From
Lisa Norris, Human Resources Director
Title
Review Texas Municipal League Losses related to the City of Grand Prairie in the areas of Property, Auto, Liability, and Workers Compensation to address the question as to whether the City should bid coverages or not
Presenter
Lisa Norris-Human Resources Director, and Anna Doll-Deputy City Manager
Recommended Action
Approve
Analysis
During staff’s review of the PID’s insurance coverage, Councilmember Swafford requested we review the possibility of bidding out the insurance coverages for Auto/Property, Liability, and Workers Compensation. These coverages are currently provided by the Texas Municipal League (“TML”). The attached “City of Grand Prairie TML Loss Ratios” provides a detailed snapshot of our city’s 5-year losses by coverage type (i.e., auto, property, general liability, etc.) as well as a summary of the 15-year loss ratio.
We have reviewed the city’s losses with our Risk Consulting firm, McGriff, Seibels and Williams of Texas and they recommend, and we agree it would not be wise to release a bid this year, based on several factors:
1. TML has a large Risk Pool for Texas Municipalities, a well established relationship with our city staff, and proven responsiveness on claims, issues and loss reimbursements;
2. Texas Municipalities have been hit hard with high losses in the most recent four years from Hurricane Harvey, hail storms, high winds, flooding and ice storms.
3. Our city’s losses have been extremely high in auto and property resultant from the same items noted in #2 above.
4. If we were to bid, it would not be good for us with our 5-year poor loss history, and with the entire Texas insurance market recovering from major losses. This could open the door for bidders to review our history, consider us a “high loss threat” and either not bid, or inflate premiums to ensure they profit in this “hard market.”
Unfortunately, Grand Prairie had significant property and auto losses in the l...
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