Gallagher currently provides brokerage/consulting services for Risk Management, Commercial Insurance, Employee Welfare and Benefit Programs.  Attached are the renewal projections for FY 2023-2024, which reflect an overall cost increase of 18%, or more than $456,000.

FMIT Property Renewal:  As expected, with the volatile and challenging property market, all property carriers are taking major rate increases.  These increases are due to the increased cost of reinsurance for carriers and the rising costs of first and third party claims.  As a result, the overall increase in property rate was ~62%.   Note: FMIT baseline increase in Property for members was 72% but we were able to obtain a lower than baseline figure based on having the recent insurance replacement cost appraisal completed.

FMIT Workers Compensation Renewal: Overall increase of 5% and payrolls were up 4%.   As previously discussed, this is an excellent outcome considering Nassau County’s historical claims experience.    Again, the key was negotiating with FMIT to keep an aggressive Incentive Credit of ~30%  ($537,399) on the policy which is essentially an up-front deviation from what the premium should be based on FL rates.

Other Lines of Coverage: Even with a few large payouts on older claims, and an increase in auto claims, we were highly successful in holding increases for all lines, except property, to less than 10% and in many cases less than 5%.  This was a double win as, in most lines of coverage, we saw an increase in exposures, such as values, # of units, employee count and payroll.