Council here has agreed to call for proposals to provide municipal insurance coverage in the hope of finding some savings, and plans to hire a consultant to help it determine the best value.
Since amalgamation in 1999, the municipality has been insured with the Frank Cowan Company, one of the few companies offering to insure municipalities. The policy is currently brokered through Minto-based Larry Grummett Insurance.
In 2013 the town’s insurance premium was increased by about $7,000 over 2012, to $249,925 for coverage that includes $20 million in liability coverage per occurrence.
In October of 2012, the town considered separating its general carrier from brokerage services and passed a resolution stating, “when a call for proposals is considered, that brokerage fees not be quoted separately,” and directed staff to bring back a report on whether a call for proposals should be considered in 2014.
At the July 16 meeting a resolution was adopted requesting a cost estimate for a third party consultant to assist with preparation of the RFP and review of proposals. At the Oct. 1 council meeting, CAO Bill White presented a report recommending that if council elected to make the insurance renewal subject to a request for proposals, that up to $4,000 be allocated to hire a consultant.
Councillor Ron Elliott was opposed to even considering a change of insurance carrier.
“I feel really comfortable with our insurance company, I really do,” said Elliott. “Whenever we’ve needed them they were there. I’m concerned about going into the unknown,” he added.
Councillor Mary Lou Colwell disagreed, stating, “with this being such a big expenditure to the town, I think we owe it to the taxpayer to see our options. That’s all this is.”
Colwell noted the town’s current insurance carrier would be involved in the process and she suggested they might be encouraged to “sharpen their pencil.”
“We haven’t reviewed the insurance in the past. We’ve rubber stamped and signed the cheque and paid the policy. So I think as a council that we should be better informed and make sure we’re doing the best for the ratepayers and I think this is the only way we can do it,” agreed deputy mayor Terry Fisk.
Mayor George Bridge pointed out there appears to be more competition in the field of municipal insurance than has been the case in the past. “This came to us because we had local municipalities close to us that saved sixty and seventy thousand dollars,” he noted.
Elliott requested a recorded vote on the decision to call for proposals, stating, “I’m concerned about our town being put in jeopardy.”
The motion to call for proposals passed with only Elliott opposed.
On the question of hiring a consultant to assist with the process, councillor Rick Hembly was initially opposed.
“These companies that we’re dealing with, do they not insure municipalties now? I don’t understand what they’re saying – that they need more information from us? I personally will not support the $4,000, I think that’s ridiculous.”
“It’s not that the insurance company doesn’t know what they’re selling us – but do we know what we’re buying?” explained Bridge. The mayor pointed out that one quote might come in with a significantly lower price than another, so the question becomes, “Is our staff well enough qualified to know we’re not losing coverage for the difference.”
After White stated he would prefer to see the town engage a consultant, Hembly said, “I will support you Bill if you feel this is the best for our community… if you think it’s going to save us money then I don’t have a problem with that.”
The motion to hire a consultant to help with the proposal passed unopposed.
