District proposes switching to flat‑fee insurance broker to increase transparency and cut costs

Robert, addressing the board on property and casualty renewal, recommended the district move from a commission‑based agent model to a flat‑fee broker relationship. He said the broker would charge a transparent, fixed fee rather than receiving commissions from carriers, and the proposed agreement would lock broker fees for three years while allowing the district to opt out after the first year.

"So it's a more transparent model for our insurance," Robert said, adding that other districts have adopted the approach and that early conversations with CFOs elsewhere were "very positive." Staff estimated savings in the neighborhood of $50,000 per year, but cautioned that carriers able to insure large school fleets and aging properties may be limited and that newer assets can raise premiums.

Board members asked about conflict‑of‑interest disclosures and whether brokers would still receive commissions for certain lines (for example, cyber insurance) required by carriers. Robert said brokers have agreed to full transparency and that any commission‑based payments would be deleted from the district’s broker fee when the carrier requires it.

The item was presented for direction; no formal vote was recorded. Administrators said they would proceed with further review of the broker agreements and report back with contract language and any required disclosures.