Title
Insurance Brokerage and Consulting Services - Approval
...History
Overview and Background
The Village recently issued a Request for Proposals (RFP) seeking qualified firms to serve as a broker/consultant for the Village's liability, property and employee benefit insurance programs for the upcoming 2019 renewal. Proposals were received from four (4) insurance brokers, including The Horton Group, Arthur J. Gallagher & Co., Conner & Gallagher Insurance Services Inc., and Alliant/Mesirow. All four responses were compliant with the RFP requirements and contained detailed pricing information ranging from $550,000 to $426,375 for a five (5) year period. A copy of the proposal summary is attached.
Broker Evaluation
A selection committee comprised of Trustee Carroll and staff from the Finance Department and Village Manager’s Office evaluated the proposals. Two of the four proposers were invited for an interview - The Horton Group and Arthur J. Gallagher. Each firm gave a brief presentation of the firm's qualifications, followed by responses to questions that the Village had provided them based on our initial review of their proposals.
Based upon submitted proposals and interviews, the selection committee recommends that the Village continue to contract with The Horton Group for liability, property and employee benefit insurance brokerage and consulting services. While both firms are sufficiently qualified to provide the services requested, staff is confident that The Horton Group is a better fit for a number of reasons.
On the property and liability side, The Horton Group has enabled the Village to keep its premiums flat or declining each year, while keeping our retention amounts at a reasonable level. This trend is due to The Horton Group's access to a large number of carriers, the Village's minimal claims history and a strong claims processor. During our relationship, The Horton Group has also decreased their agency fee by almost 25% as they became more familiar with the operations of the Village.
On the employee benefits side, The Horton Group has worked with the Village to develop and implement an employee benefit program grounded in choice, consumerism and wellness. Since 2010, increases in medical insurance premium rates as well as ancillary lines of coverage have remained stable and below trend. In addition to the employee benefit program consulting support the Horton Group provides, they have and will continue to provide resources to help us evaluate Human Capital Management Systems, as well as resources on benefit related legal and general human resources questions.
The Horton Group was recently ranked one of the top 50 insurance firms in the nation and they have specialized in the public sector for more than 25 years. The Horton Group has provided exceptional responsiveness to the needs of the Village throughout their tenure, consistently meeting all renewal deadlines. In addition, their headquarters are based in Orland Park and they have invested heavily in the Orland Parkway - I80 corridor development.
Staff will continue to take advantage of new and/or existing services offered by The Horton Group that were brought to our attention during this RFP process. We will utilize the online risk management system provided by The Horton Group which will help staff streamline the incident and claims tracking process. We also intend to utilize The Horton Group’s certificate of insurance tracking system which will make this process more efficient and effective.
On June 4, 2018, this item was reviewed by the Finance Committee, recommended for approval and forwarded to the Board for consideration.
...Financial Impact
Funds for insurance brokerage and consulting services will be included in the FY2019 Insurance Fund budget.
...Recommended Action/Motion
I move to approve awarding a two (2) year contract with the option to renew at the Village's discretion for one (1) additional year to The Horton Group for Insurance Brokerage and Consulting Services related to the Village's liability, property and employee benefit insurance programs, in the amount not to exceed $87,000 for each of the first two (2) years and $84,125 for the third year.