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Council accepts Bremer Insurance renewal after presentation showing modest net rate declines
Summary
After a presentation from Bremer Insurance, the Morris City Council voted to accept an insurance renewal that staff said yields a modest net premium decrease and preserves core coverages. The firm cited extreme weather, "social inflation" and litigation funding as ongoing pressures.
Joel Quam, an insurance representative from Bremer Insurance, told the Morris City Council on June 10 that the city's renewal reflects a modest overall net premium decrease and stable coverage levels. "Across the board ... it's a 3% decrease year over year," Quam said, adding that property and liability rates had an estimated net rate decrease of about 8% while auto coverage remained flat and workers' compensation showed an unusually steep average decline.
Quam framed the picture as mixed: insurers are still grappling with more frequent extreme events and higher claim costs, and the industry now factors in what he described as "social inflation"—larger jury verdicts—and third-party litigation financing that can drive up claim costs. He also noted specific coverage changes the city should be aware of, including the treatment of scheduled mobile property (the council's scheduled item increased to about $391,000) and limited coverage language for certain cannabis- and liquor-related exposures; he said low-potency edibles were included by the league but higher-potency products were generally excluded.
The council moved to adopt a resolution accepting the insurance renewal proposal the city received from Bremer Insurance and approved it by roll-call vote. City staff and the presenter emphasized that the renewal keeps comparable limits while capturing the modest rate improvement. "You guys will see a premium reduction, but not only a reduction of premium, also rate wise," Quam said.
Why it matters: The renewal influences the city's fiscal baseline and how staff budgets for property, liability and workers' compensation in the coming year. City officials said accepting the renewal preserves current coverage breadth while reflecting the insurance market's continuing volatility.
What's next: Staff will finalize renewal paperwork and proceed with implementation under the terms presented by Bremer Insurance. Council action on the resolution formally accepted the proposal and authorized staff to move forward.
