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Ratification of Contract Award for RTA Parametric Insurance Coverage [2023-2024]
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DESCRIPTION: Ratification of Contract Award for RTA Parametric Insurance Coverage [2023-2024]
AGENDA NO: Click or tap here to enter text.
ACTION REQUEST:
? Approval ? Review Comment ? Information Only ? Other
RECOMMENDATION:
recommendation
To ratify emergency action taken by the Chief Executive Officer to bind parametric hurricane coverage prior to peak hurricane season with Homesite Insurance Company of Florida/Certain Underwriters at Lloyd's of London, with a $4,000,000 aggregate limit, an effective date of September 1, 2023, and an annual premium of Two hundred forty-three thousand two hundred fifty-two dollars [$243,252.00].
This expenditure was covered in full through $272,037 in savings realized at the June 1, 2023 and August 1, 2023 insurance renewals as follows:
June 1, 2023 renewals - Board Approval of $2,465,669.31; Actual premiums of $2,248,512.68; Savings in the amount of $217,156.63.
August 1, 2023 renewals - Board Approval of $4,941,405.00; Actual premiums of $4,886,523.79; Savings in the amount of $54,881.21.
Although RTA has historically sought business interruption insurance without success, this parametric insurance product will now cover RTA for all verifiable hurricane-related losses, inclusive of business interruption and property/casualty, with pre-defined payouts that avoid a lengthy claims process.
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ISSUE/BACKGROUND:
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Staff, with the assistance of the RTA insurance broker of record, The Kennedy Financial Group of Louisiana, Inc., has recently reviewed additional opportunities to protect RTA assets and interests in the event of a hurricane. Although RTA currently has adequate coverage of its real property and vehicles, other elements of potential loss, such as business interruption, are not covered through available traditional insurance. Parametric insurance is a non-traditional insurance product that offers pre-specified...
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