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City insurance broker says premiums fell after competitive bids and risk controls; payment terms to ease cash flow
Summary
City staff and their broker told the Rocky Mount City Council Committee that competitive bidding and strong loss-control programs produced lower premiums, a 17% drop in property costs, and installment payment terms; the presentation detailed coverage levels, self-insured retentions, and TPA costs.
Mike Bond, the city's social services director, and insurance broker Derek Slate walked council through the city's insurance renewal and risk-management strategy.
Bond noted the insurance year runs with the fiscal year and that obtaining early quotes is difficult. Derek Slate, the broker, said competitive bidding and long-standing carrier relationships produced a reduction in property premiums this year — a decrease he attributed in part to market stabilization and a strong negotiating effort. "We were able to actually get a decrease which is phenomenal," Derek said.
Key numbers presented: the city carries about $6 million in combined liability coverage and $2 million of cyber liability with a $50,000 deductible; the TPA (third-party administrator) cost was projected at about $115,000 for fiscal year 2027; the city uses a self-insured retention model with $650,000 retention (and $750,000 for law-enforcement claims). Bond said insurers and brokers negotiated installment payment terms this year to help the city's cash flow rather than a single lump-sum payment at the start of July.
Derek and Bond credited the city's risk-management work for putting the city in a stronger position: targeted loss control, driver-authorizations, a vehicle accident review board and other safety programs reduced loss experience and supported more favorable renewal terms. They also described property valuation and replacement-value coverage for municipal assets and noted ongoing cyber, liability and workers'comp trends.
Next steps: staff will finalize binders and payment schedules before the new policy year begins; council asked clarifying questions about coverages, deductibles and how the city compares to peer jurisdictions.
