The Town of Minto continues to reap financial benefits from a 2014 decision to tender for municipal insurance coverage.
In 2014 council switched insurance coverage to Jardine Lloyd Thompson Canada Inc. (JLT) and local broker Wylie Insurance.
Representatives of JLT and Stephen Wylie of Wylie Insurance appeared at town council’s March 7 meeting to present a proposal for 2017 coverage with premiums which are still about $9,000 below 2013 levels.
The town was paying $249,925 for insurance in 2013, which represented an increase of more than $10,000 from 2012 premiums.
The premium dropped to $228,746 in 2014, the first year after switching carriers and the 2017 premium is quoted at $240,639.
The 2017 premium is up $8,121 from 2016, mainly to cover an increase in blanket property limit from $77,817,773 to $80,798,284, explained CAO Bill White in a report to council.
Additional coverage is now included for three railway bridges being added to the property inventory, valued at $150,000 each.
“The overall increase is 3%, which is pretty good because we have a lot more assets we are insuring and a four per cent increase on property values,” said Andrea Bartels of JLT.
Increase of 5% since 2014
“Since 2014 the town’s insurance premiums have only increased 5%, or less than 1.7% per year,” explained White.
“This includes increases in property value of over $5 million as well as minor ‘across the board’ increase in property coverage JLT has passed on to all clients.
“In 2016 JLT extended the liability premium freeze for another three years which ensures this part of the premium remains the same through 2020.
“The town’s approach to risk management resulted in competitive pricing during the 2014 has led to very stable premiums. There are some jurisdictions that routinely have double digit premium increases each year.”
White estimates the town has avoided at least avoided $110,000 in premiums since 2014 and recommended council accept the 2017 renewal from JLT, rather than tendering for coverage at this point.
“We’re only into year four here and I think they’ve done a great job,” said White, noting that prior to 2014 the municipality had gone about 15 years without testing the market.
“I’m pleased at where we are,” commented Mayor George Bridge.
“I know at the time we signed, some told us ‘they just undercut you to start out’” and later the town could expect “a big balloon” in premium costs.
“It’s a team effort,” stated Bridge, noting the town’s efforts at providing a safe workplace, proper staff training and other due diligence helps keep premiums down.
Council received the report and approved the renewal.
