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ICRMA JPA Renewal / Broker Agreement / Associated Premiums
<br />June 15, 2021
<br />Page 3
<br />services, safety trainings, claim audits, and policy reviews. Currently comprised of 16
<br />California cities (Adelanto, Bell, Downey, El Monte, El Segundo, Fullerton, Glendora,
<br />Hawthorne Hermosa Beach, Huntington Park, Inglewood, Lynwood, Monterey Park, San
<br />Fernando, and South Gate), Santa Ana joined ICRMA in July 2019.
<br />In this renewal period, the City's premiums experienced an overall increase of 69% for
<br />Liability and Property lines of coverage. The City's Workers' Compensation coverage
<br />experienced a 4% increase overall. The significant program increases occurred in
<br />coverages for liability and cyber. These were primarily due to an insurance market with
<br />very few excess carriers willing to quote municipal government entities and a continuing
<br />rise in jury awards and settlement amounts and increasing cyber-attacks trending upward
<br />not only in California cities but nation-wide.
<br />ICRMA Pool and Ancillary Policies Premiums - Fiscal Year Comparisons
<br />QUOTED
<br />PREMIUMS
<br />WORKERS' COMPENSATION
<br />COVERAGES
<br />FY 2019/20
<br />FY 2020/21
<br />FY 2021/22
<br />Excess Pool Workers' Compensa lion
<br />Program
<br />$
<br />456,447
<br />$
<br />386,000
<br />$
<br />362,219
<br />Excess Workers' Compensation
<br />Buffer
<br />$
<br />155,433
<br />$
<br />194,000
<br />$
<br />240,118
<br />Total
<br />$
<br />611,880
<br />$
<br />580,000
<br />$
<br />602,337
<br />LIABILITY AND PROPERTY COVERAGES
<br />-5%
<br />4%
<br />Excess Pool Liability Program
<br />$
<br />1,579,693
<br />$
<br />1,680,000
<br />$
<br />3,936,181
<br />Auto Physical Damage Program
<br />$
<br />70,550
<br />$
<br />79,000
<br />$
<br />119,215
<br />Property & Equipment Program
<br />$
<br />356,514
<br />$
<br />455,000
<br />$
<br />484,653
<br />Crime Program
<br />$
<br />10,845
<br />$
<br />12,000
<br />$
<br />15,456
<br />G berPro ram
<br />$
<br />21,611
<br />$
<br />31,000
<br />$
<br />70,314
<br />Excess Liability Buffer
<br />$
<br />713,112
<br />$
<br />786,000
<br />$
<br />962,000
<br />DIC Earth Movement & Flood
<br />$
<br />289,368
<br />$
<br />844,000
<br />$
<br />985,856
<br />Terrorism
<br />$
<br />10,965
<br />$
<br />13,000
<br />$
<br />12,330
<br />Underground Storage Tanks-
<br />Environmental
<br />$
<br />7,282
<br />$
<br />8,000
<br />$
<br />10,157
<br />Total
<br />$
<br />3,059,940
<br />$
<br />3,908,000
<br />$
<br />6,596,162
<br />28%
<br />69%
<br />The City is permissibly self -insured for workers' compensation through the State of
<br />California Department of Industrial Relations (DIR). For FY 2021-22, staff is requesting
<br />that the City Council approve the City's obligation to pay the State of California DIR
<br />City Council 35 - 3 6/15/2021
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