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CITY OF NEWPORT BEACH A:�-6SL�
COUNCIL AGENDA
ADJOURNED REGULAR MEETING
STUDY SESSION 4:OOPM
FEBRUARY 28, 2006
INSURANCE RENEWAL OVERVIEW
I. BROWN AND BROWN/ OVERVIEW
A. Seventh Largest Independent Brokerage in the U.S.
B. Eighth Largest Independent Brokerage in the World.
C. 150 locations in 33 States
II. MARKETING PROCESS
A. November - Start to Accumulate Updated Statistical
Underwriting Information
B. December - Start Submission Process to Markets
C. January - Review Market Status With City's Staff
D. Week of February 6th - Joint Meetings with City's Staff/
Brown & Brown and Selected Carriers
III. MARKET CONDITIONS AND ANTICAPATED 2006
RENEWAL RATES
A. Excess General Liability: Stable with renewals at slight
variations from expiring.
B. Excess Workers Compensation: Expected flat to 10%
decrease in rate.
C. Property:
1. Master Property Policy excluding piers and without
coverage for earthquake and flood: Expected flat
premium rates.
2. DIC- Earthquake, Flood and including all coverage's on
the piers: On tougher renewals we saw increases on
15 -25% in premium rates.
INSURANCE
City of Newport Beach
February 28, 2006
Agenda
IV. MARKET CONDITIONS /EXPECTATIONS REFLECT
MARKET SELECTION
A. Excess General Liability- Incumbent Markets were clearly
the most competitive priced with the most comprehensive
terms.
B. Excess Workers Compensation: To take advantage of
market leverage six markets were selected.
C. Property: Due to what was expected on the DIC-
earthquake and flood 15 markets were selected.
V. MARKETING RESULTS
A. Excess General Liability: Flat premium after slight
increase in population exposure base.
B. Excess Workers Compensation: Slight decrease in
premium after 8% increase in payroll. Effectively a 9%
reduction in rate.
C. Property: 12% premium increase
VI. SUMMARY
VII. QUESTIONS
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IN• RANCE