Macomb Council renews property and casualty insurance with ICRMT despite higher premium

Macomb 'The Macomb City Council voted unanimously to renew the city's property and casualty insurance program with the Illinois Counties Risk Management Trust (ICRMT) and Pumo Insurance Agency, approving the renewal after a presentation from the city's broker and questions from council members.

The renewal carries a year-over-year premium increase the broker described as roughly 13.4%, which the council discussed as a $114,000 increase in annual premium cost. The council approved the renewal in a 6-0 roll call vote; Aldermen Chew, Vojetzky, Shabazz, Dorset, Wynne and Hemingway voted aye.

The city's broker, Chris Pumo of Pumo Insurance Agency, walked the council through the ICRMT program and the packet of coverage documents provided to members. "The program itself continues to perform very well as a whole," Pumo said, noting ICRMT has operated since 1983 and serves hundreds of public entities in Illinois. He highlighted key coverage features, including $1,000,000 per-occurrence general liability limits with $3,000,000 aggregate, law-enforcement liability coverage, auto liability and physical-damage limits, a $1,000,000 cyber liability limit and excess layers that provide significant additional capacity.

Pumo told the council the city's property values rose after a Kroll appraisal, and he cited several factors driving the premium increase: an increase in payroll (given in the packet as about $769,000), higher building values (reported as a $12.7 million increase after appraisal) and a change in the city's experience modification that reduced a prior credit. "Year over year, we are at plus 13.4%," Pumo said.

He also reviewed the city's loss history and an analysis of alternative deductibles. The packet reported 315 claims over five years and an unfavorable loss ratio that, Pumo said, has been driven in part by a recent critical law-enforcement incident. He presented a retention analysis showing that raising some deductibles could reduce premium modestly but expose the city to larger potential direct costs in the event of claims.

Several aldermen expressed concern that the renewal materials and cost information arrived late. "Just curious as to why those discussions were not had in committee and why we only heard about this on November 19," Alderman Dorsett said. Pumo apologized for the timing and said staff had begun the renewal process earlier in the year. Scott, a city staff member who introduced the broker at the meeting, said the council had not budgeted for the full increase and that it would affect roughly half of the fiscal year.

Following discussion, the chair recommended authorizing renewal with ICRMT and Pumo Insurance Agency and declining to change deductibles. The council moved and approved that recommendation by roll call vote. The meeting then adjourned.

The packet and presentation provided detailed schedules and limits for the city's coverages; the council approved the renewal and did not adopt higher deductibles at the meeting. The city will proceed with the policy as presented to cover the upcoming policy year.