Alliant Insurance Market Update

May 20, 2021
Presented by:
Chris Tobin, Banesa Laird,    
Eve Wildhagen, and Pam 
Dominguez 
City of Glendale, AZ 
Insurance Market Update
and 2021/2022 Renewal 
Projections 
(THIS INFORMATION HAS BEEN CONSOLIDATED FROM VARIOUS INDUSTRY SOURCES)

2
City of Glendale 
Presentation Overview
Property/Casualty Industry Performance  
Property
General Liability
Workers Compensation
Cyber liability 
Renewal Strategy
Addressing City of Glendale Concerns and 
Expectations 
Insurance Premium Budget Projections 21/22

3
Property/Casualty 
Industry Performance    
2021/2022

4
• The Universe of carriers especially in Public Entity is shrinking
• Remaining public entity markets are picking up the slack, but with 
restricted coverage, reduced capacity, higher premiums, lower limits, and 
tougher underwriting criteria 
• Less Supply + Increased Demand = Higher Rates
M&W
Current Status of the Insurance/Reinsurance Market

Property/Casualty Updates
Property and Liability: Market continues to harden – market capacity has been cut, fewer carriers are willing to write the 
business and minimum premiums have increased. 
Many standard carriers are not offering large ground up limits (Zurich, among others), forcing brokers to build 
capacity through multiple carriers.
Several carriers have pulled out of public entity, and are non-renewing coverage within the state, increasing 
Retentions for exposures such as Police Professional & Employment Practices and dishing out large double digit 
increases.
Markel & Trident – Pulling out of writing public entity new business.
Public entity Issues with APR/AWAC- Max $5M Capacity; $3M minimum SIR – regardless of Safety exposure! 
Safety National - $1M minimum SIR and Premium, in addition to lower limits.

Workers Compensation Market: Treatment of COVID-19 claims could still impact the Workers’ Compensation market 
significantly. However, unlike other core coverage lines, WC remains relatively stable. 

Several Lead Markets looking to increase Minimum Premiums and/or Retentions – especially for organizations 
with police and fire payroll. 

Industry increase in severity claims due to Medical Inflation and Presumptive Laws.

Cyber Liability Market: Public Entities and Healthcare among largest target class for criminals. 

Expect upward pressure on rates and possible coverage restrictions.

SAM claims continue to come forward, high values and potential coverage issues (occurrences, 
date of loss, coverage exclusions/caps) – insureds’ Policies and Procedures increasing focus of 
underwriting. 
Corporate mandates and insurance treaties limiting the ability for many carriers to write difficult 
exposures such as wildfire, convective storm(risks privy to tornados/hail, etc.), police professional 
liability, etc. 
Or, placing limitations such as aggregates for these coverages – maxing out amount payable 
in any one year. 
COVID-19 exclusions on all policies in light of the pandemic.
Current projections place COVID property losses at $40B - $80B. 
Carriers have become more stringent – valuation, integrity and completeness of data is critical in 
garnering underwriter attention and preferred terms. 
Property/Casualty Updates - Continued

7
Cyber Insurance Update 
Cybercrime is projected to hit $6 trillion 
annually by 2021, was $2 trillion in 2019
Ransomware is now the fastest growing 
in frequency and severity of claims for 
insurance companies 
Largest cyber extortion demand +$20M
Largest cyber extortion payment +$5M
Costs of notifications in data breach
•
$5 - $25 per individual

8
Cyber Continued 
Cyber attacks:

Canadian government (national revenue agency) – August 2020

New Bedford, MA – Ransom demand north of $5M – 2020

Apple Ransom Demand $50M– Apple Blue – April 2021

Colonial Pipeline Shutdown –Ransom demand –May 2021

Chubb Insurance Ransomware Demand - April 2021-

Solar Winds – 2020
Trends: 

Top 10 cyber insurance carriers (controls about 70 - 75% of the 
marketplace) all report an overwhelming increase in ransomware claims

No industry class was spared

Public Entity was the most successfully targeted sector in terms of 
penetration by the attackers and frequency. PE is amongst the least 
prepared due to older software/computer equipment, lack of training, 
low IT security budgets

Cyber Market Update 
What to Expect in 2021
9
Higher
Lower
Increase in Critical Examination of Risks Lower Capacity
Retentions
    Limits/Aggregate Limits
Premiums
    Sublimits
Increased Request for Information 
Less Expansion of Coverage Terms
Increase in Declinations
Less Accommodations

How long will this last?
•
Only time will tell, next 12 months are critical to watch
•
If ransomware eases up and no other new form of loss takes its place, the industry could 
recover quickly. However, ransomware continues to target all industries 

What should we keep an eye out for?
•
Changes in vendor services and the interactions with vendors during a claim

First Party Property  
General Liability 
Workers’ Compensation 
Miscellaneous Lines
Pollution
Cyber Liability –Primary and Excess 
Airport 
Crime
10
Overview of Insurance Programs

11
Alliant Property Insurance Program 
(APIP) 
Glendale Property Coverage in APIP
•
Replacement cost for physical damage
•
Earthquake Coverage provided
•
Flood Coverage including Zones A&V
•
Automatic acquisition of new locations
•
Blanket fine arts coverage
•
Municipal bond and tax revenue interruption coverage
•
Course of construction coverage
•
Coverage for Misc./Unnamed locations 
•
Boiler and machinery (includes jurisdictional inspections)
•
First Party Automobile Coverage 
•
Cyber liability limits up to $2M
•
Pollution limits up to $2M
•
Built-in loss control and appraisals
• APIP provides the best coverage 
terms for municipalities
• Broad Insuring Agreement
• Coverage for all property (personal 
and real)
• First party Automobile coverage
• APIP is unique in that it provides 
separate coverage for Cyber and 
Pollution Liability 
PROPERTY COVERAGE OVERVIEW

12
Current Property Insurance Overview 
Alliant Insurance 
Property Program 
(APIP) 
2020/2021
Limits
21/22 Updates
Total Insured Values 
$848,993,025
$848,993,025
Policy Limit
$800,000,000 
$800,000,000 
Deductible
$100,000 All Risk Deductible $100,000 All Risk Deductible
Key Sub-limits:
Sub-limits:
Sub-limits:
Business Interruption 
$100,000,000 
$100,000,000 
Course of Construction
$25,000,000 
$25,000,000 
Terrorism 
$100,000,000 
$100,000,000 
Flood  (Non High Hazard)
$75,000,000 
$75,000,000 
Flood (Flood Zone A&V)
$7,500,000 
$7,500,000 
Earthquake 
$100,000,000 
$100,000,000 
Boiler and Machinery (APIP)
$100,000,000 
$100,000,000 
Cyber Liability (APIP)
$2,000,000 (APIP member 
limit)
$2,000,000 (APIP member 
limit)
Pollution (APIP)
$2,000,000 (APIP member 
limit)
$2,000,000 (APIP member 
limit)
Expiring Premium
$722,385.07

13
Current Coverage
Coverage is provided through the 
APIP program 
Earthquake: $100,000,000 limits 
with a $100K deductible
Flood: $75,000,000 Limits with a 
$250,00 all flood zones
$7,500,000 Flood for Zones A&V 
with a $500,000 deductible 
Earthquake and Flood Overview- in APIP

14
Coverage for damages to third parties arising out of 
the City’ negligence includes:
• General Liability- Occurrence
• Law Enforcement Liability 
• Automobile Liability 
• Public Officials (Directors and 
Officers) Liability
• Employment Practices Liability
General Liability

Current – 20/21 Glendale Excess Liability Limits Structure 
$41M
Great American Company
$5M xs $35M excess of $1M SIR
$36M
Navigators Specialty Insurance Company
$10M xs $25M excess of $1M SIR
$26M
Hallmark Specialty Insurance Company
$5M xs $20M excess of $1M SIR
$21M
Allied World Assurance Co. (U.S.) Inc.
$10M xs $10M excess of $1M SIR 
$11M
Safety National Casualty Corporation
$8M xs $2M excess of $1M SIR 
$3M
Safety National
(GL)
$2M xs $1M SIR
Safety National
(AL)
$2M xs $1M SIR
Safety Specialty
(POL+EPL)
$2M xs $1M SIR
Safety Specialty
(LEL)
$2M xs $1M SIR
$1M
$1,000,000 Retention  
Total Annual Premium - $932,138 Plus Taxes/ Fees 
*Limits shown do not reflect the applicable Policy Aggregates for each layer participant

16
Glendale Excess Liability Marketing Results 
MARKET
RESPONSE
Safety National Insurance (Incumbent) 
Safety National has not provided a renewal quote, they are currently reviewing the 
submission/exposure/claims.  Safety has advised they may lower limits offered. 
PRISM FKA CSAC-EIA
This is Risk Sharing Pool, and it’s pending review from Committee for approval
AIG 
Submitted Pending Response from carrier. 
Berkley 
Will be able to provide $5M, pricing based on Safety National Lead pricing.
Berkley Public Entity Managers
Reviewing submission. 
Navigators (Incumbent)
Carrier will restrict capacity to $5M-$7.5M.
Great American 
Non-Renewing all public entity business. 
Hallmark Specialty (Incumbent)
Submitted, pending review.

17
•
Arizona’s 1451 was signed by the Governor on 4/14/2021, 
which expands firefighter’s protection under WC. 
•
Cancer can be rebutted by clear and convincing evidence 
that there is another cause other than occupational and 
claims can be filed by former (fire fighters and 
investigators and peace officers) up to 15 years after their 
last day of employment.   
•
AZ Presumptive Legislature is one of the 
factors limiting the amount of insurance 
carriers willing to write in the state.
•
The WC Industry as a whole is seeing a trend in larger 
Police/Fire losses and Arizona is no exception
•
Currently some AZ cities are unable to obtain WC 
insurance, and are being forced to self insure for WC 
rather than transferring risk to an insurance carrier
Workers’ Compensation Trends in Arizona – SB 1451

18
Excess Workers’ Compensation Coverage Overview 
Coverage for injuries to employees while in the 
course and scope of employment
Insurance Carrier  
Safety National
Limits
Statutory
Employers Liability Limit
$       2,000,000
CURRENT Retention
$       2,000,000
Payroll at Binding
$   146, 719,036
Expiring Premium
$            230,349

19
Glendale Workers Compensation 
Marketing Report 
MARKET
RESPONSE
Safety National 
(Incumbent)
Pending quote from current carrier. 
Carrier has questions regarding an open claim that has developed into a longer 
term Covid 19 claim, in addition to currently reviewing the impact of SB 1451.
PRISM POOL 
Full submission to PRISM pool. Pending indication, as the committee will review 
closer to June. 
Marketing Note:
For the 2020 renewal Alliant approached the following carriers: AIG, Arch, Chubb, 
Grey Specialty, Liberty, and US Specialty. Carriers declined due to losses or possible 
SB 1451.

20
Glendale’s Cyber Liability Coverage 
LIMITS STRUCTURE 
Part of APIP Cyber Program (Lloyd's of London Beazley Syndicate)
Limits are Shared among all members 
$45,000,000 Annual Policy and Program Aggregate Limit of Liability for all 
members combined
Coverage Includes:
$2,000,000 maximum limit, per occurrence, each member 
Breach Response Costs, Business Interruption, Cyber Extortion, Data 
Recovery Costs, Dependent Business Interruption, Data & Network Liability, 
Regulatory Defense & Penalties,  Sub-limits Include: Fraudulent Instruction, 
Funds Transfer Fraud, Telephone Fraud, Computer Hardware replacement 
costs 
Retention:
$500,000, Per Occurrence for each Insured 
Premium Included in APIP Cost 
APIP -Beazley Breach Response Services (BBR) Cyber Enhancement 
Option  (Beazley) 
Notified Individuals- Includes any notification Services, call center services, 
credit & identify monitoring, and Beazley Breach Response Services 
Limits Purchased: 250,000 Notified individuals 
Retention: 100 Notified individuals 
Alliant Cyber Excess (ACES) - Axis Insurance Company 
Dedicated Limits $3M Excess of $2M APIP (shared limits) 
Limits are excess of APIP Cyber and drop down to become primary 
dedicated limits should APIP aggregate layer be exhausted 
Annual Premium ACES Layer
APIP Cyber  Liability Excess Policy (Lloyd's Beazley)
$5,000,000 Dedicated Limits (excess of $5M)
$5,000,000 Each/Total – Excess of APIP shared $2M and AXIS $3M excess 
for Total of $10M in limits

21
Crime Insurance
Overview 
ALLIANT CRIME 
INSURANCE 
PROGRAM (ACIP)
2020 / 2021 Crime Coverage 
LIMITS
National Union Fire Company of Pittsburgh 
$10,000,000
Coverage Includes:
Employee Theft – Per Loss Coverage including 
Faithful Performance of Duty
Sub-Limits/Endorsements:
Forgery or Alteration - including Credit, Debit, or 
Charge Card Forgery
Revision of Discovery and Prior Theft or 
Dishonesty $25,000 Sub-Limit.
Inside the Premises – Theft of Money and 
Securities
Include Expenses Incurred to Establish 
Amount of Covered Loss - $75,000 Sub-limit
Inside the Premises – Robbery & Safe Burglary of 
Other Property
Employee Post Termination Coverage – 90 
Days
Outside the Premises - Money, Securities and 
Other Property
Bonded Employees Exclusion Deleted 
endorsement
Computer Fraud
Add Faithful Performance of Duty Coverage 
for Government Employees – Employee Theft 
Per Loss Limit 
Retention: 
$50,000
Total Annual Premium 
$28,011

22
Policies
LIMITS 
Airport Owners' and Operators' 
Liability (Chubb Insurance) 
$25,000,000 Limits with No Retention 
Coverages Include 
Bodily Injury, Property Damage, Hanger Keepers, Non Owned Aircraft, Products 
Completed (Aggregate), Medical Expenses, Personal Injury and Advertising Injury
Fiduciary Liability (Hudson 
Insurance)
$5,000,000 in Aggregate Limits  
Glendale Section 457 Deferred Compensation Plan - 98742-00
Coverages Include 
Protects fiduciaries against mismanagement of an employee benefit plans, or plan 
assets. 
Includes Defense Costs, and sub-limits for HIPPA and HITECH Fines & Penalties, 
Compliance Fees, Settler Coverage, Waiver of Recourse 
Special Liability Insurance Program 
(SLIP)
Location Covered: Regional Public Safety Training 
$2,000,000 Per Occurrence, $1,000,000 Fire Damage Liability Sub-limit 
Coverages Include 
General Liability, Personal Injury (Including Bodily and Property Damage), Fire 
Damage Liability, Non-Owned and Hired Automobile
Airport 
Owners’ and 
Operators’ 
Liability 
Fiduciary
Special 
Liability 
Insurance 
Program 
(SLIP)
Miscellaneous Insurance Policies Overview

23
City of Glendale 
Renewal Strategy
Marketing Process:

Property- Glendale is expected to receive a 38% to 42% rate increase in APIP. 
The program includes property for buildings, contents, auto, equipment 
breakdown, cyber and pollution coverage.
Alliant conducted a soft marketing of each coverage included in APIP.  Indicated 
premiums from carriers are as follows: 
•
Property: $865K 
•
Auto: $80K to $120K 
•
Cyber: $130K to replace the $2M limits in APIP 
•
Pollution: $17K to $30K to replace the $2M limits in APIP 

General Liability – Full marketing of the excess layers is taking place, Alliant 
has gone out to the market for best terms and pricing including the PRISM pool.

Workers’ Comp – The City is currently insured with Safety National which has 
a along partnership with the City. Alliant is currently marketing the excess 
workers compensation to the PRISM pool.

24
Glendale Renewal Budget Projections  2021/2022
Line of Coverage
Renewal Date
Carrier (s)
2020/2021
Program Cost (Annual)
Estimated % Change
2021/2022
Estimated Cost
Alliant Property Insurance Program (APIP)
All Risk Property Program Includes Property, Boiler & 
Machinery, Earthquake, Flood, Auto, Cyber Liability, 
and Pollution Liability coverages
7/1/2021
Various Including - Lexington
$722,385 
41.25% to 45.3%
$1,020,369 to $1,049,625
BBR -Cyber Enchantment over APIP for Notified 
Individuals- (250,000 Notified Lives)
7/1/2021
Beazley-Lloyds 
$0 
0.00%
$0 
ACES Alliant Cyber Excess Solutions $3M XS $2M
7/1/2021
Axis
$25,946 
150% to 300%
$64,865 to $103,784
ACES Alliant Cyber Excess Solutions $5M XS $5M 
($10M total cyber limits)
7/1/2021
Beazley-Lloyds 
$61,250 
150% to 300%
$153,125 to $245,000
Excess Liability $1M SIR with $40M Excess Policy Limits 
7/1/2021
1. $10M Safety National                 
2. $10M X $10M AWAC                 
3. $ 5M X $20M Hallmark              
4. $10M X $25M Navigators         
5. $ 5M X $35M Great American 
$950,039 
60.87%
$1,528,328 
Special Liability Insurance Program (SLIP)
Regional Public Safety Training Center
9/29/2021
Great American E&S Insurance 
Company
$6,317 
15.00%
$7,265 
Airport Liability Airport Owners’ and Operators’ 
Liability (3 Year Policy
1/26/2021
ACE Property and Casualty 
Insurance Company (Chubb)
$8,995 
15.00%
$14,760 
Alliant Crime Insurance Program (ACIP) Crime
7/1/2021
National Union Fire Insurance 
Company (AIG)
$28,011 
10.00%
$30,812.10 
Fiduciary Liability
7/10/2021
Hudson Insurance Company
$12,562 
14.27%
$14,355 
Premises Pollution Liability
8/15/2021
Allianz Interstate Fire & Casualty 
Company
$22,231 
30.00%
$28,900 
Total:
$1,837,736 
55.73% to 64.43% 
$2,861,831 to $3,021,881
Line of Coverage
Renewal Date
Carrier
2019/2020  
Program Cost (Annual)
Estimated % Change
2020/2021
Estimated Program Cost
Excess Workers’ Compensation and 
Employer’s Liability (Self Insured Retention $2M)
7/1/2021
Safety National Casualty 
Corporation 
$230,349 
18% to 50%
$271,812 to $345,524

25
Parting Thoughts on 2021/2022 Insurance Renewals 
•
Expect upward pressure on Liability & Property rates to continue.  Rates will continue to 
rise for both property and liability as limits/capacity decrease. 
•
Expect carriers to hold on to quotes into June as they prepare for any change in exposure 
from submissions and may even pull back on renewal terms.
•
Public agencies with a history of or exposure to large verdicts and liability settlements will 
continue to see increases and the marketplace for coverage will continue to retract.
•
Dramatic price increases and reductions in coverage can be expected in the casualty 
market, as Law Enforcement claims, and Social Unrest put municipalities in the spotlight.
•
Aging Public Entity infrastructure, undervalued locations, and lack of updates on older 
buildings, could dramatically change the property market if several large urban losses are 
recorded.

May 20, 2021
Thoughts/Comments?