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CC - CONSENT ITEM: Approval of Amendment to Existing Professional Services Agreement with AON Risk Insurance Services West, Inc. to Continue Providing Broker Services for the City's Insurance Programs through June 30, 2023
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Meeting Date: June 27, 2022
Contact Person/Dept.: Dana Anderson / Administrative Services
Phone Number: (310) 253 - 5640
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2022)
Department Approval: Onyx Jones, Assistant City Manager (06/22/2022)
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RECOMMENDATION
Staff recommends the City Council approve an amendment to the existing professional services agreement with AON Risk Services West, Inc. to continue providing broker services for the City's insurance programs through June 30, 2023.
BACKGROUND/DISCUSSION
Since July 1, 2016, the City of Culver City (City) has contracted with AON Risk Insurance Services West, Inc. (AON) to facilitate the City's purchase of insurance coverage. Prior to July 2016, the City was a member of the Independent Cities Risk Management Authority (ICRMA) for the purpose of participating in pooled risk programs for liability, workers' compensation, auto physical damage, crime, and cyber insurance.
As indicated below, for the first four years after leaving ICRMA, the City realized a significant savings, receiving additional coverage and higher limits for lower premium. However, events of the past two years, including the global pandemic, increased police liability claims, and varied natural disasters, have brought about challenging insurance and economic markets. In FY 20/21 the City's program premium increased by about 53%, or $714,881. In FY 21/22 the City's insurance premiums increased by another 40%, approximately $830,000. AON has ...
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