Alliant Market Information 2024-2025

Cit of Glendale, AZ                       
State of the Market and 
Renewal Presentation    
May 16, 2024 
Presented by: Chris Tobin, Pamela 
Dominquez, and Banesa Laird

Insurance Market 
& Financial 
Performance

3
Market Pressures…
Cyber Attacks 
Social Inflation/ 
Nuclear Verdicts & 
Legislation
Ukraine & Middle 
East War/Conflicts 
Geo Political 
Mass Shootings
Great Resignation & 
Quiet Quitting
3
Inflation
Natural 
Disasters
Aging 
Infrastructure
Climate Change
Supply Chain & 
Labor Shortage
Proliferation of 
“secondary” 
perils (SCS) 
Q2 23 P/C industry combined ratio, net income at worst levels since 2011: 
“While the aggregate industry balance sheet is strong enough to meet its 
contractual commitments and obligations to consumers and businesses, the 
ever-increasing challenges from claims cost and expense increases, extreme 
weather events, legal system abuse, and ongoing regulatory resistance to rate 
adequacy in a few jurisdictions, continue to have significant negative financial 
consequences for insures,” Robert Gordon, senior vice president of policy, 
research and international for APCIA.

Impactful issues for insureds: 
4
Insured natural catastrophe 
losses exceeded $100bn for 
2023, with SCS the largest 
driver, accounting for $70b 
of the total. This marks the 
4th consecutive year global 
losses have topped $100b. 
03
Insurers produced negligible 
profit in 2022 – Nearly $125b 
in Global Insured CAT losses 
in 2022 – 2nd Worst Loss Year 
on Record.
• United States accounted 
for 75% of global insured 
losses
02
Consistent increases in 
attritional property 
losses (fires, water 
damage, tornados, hail, 
wildfires) – are 
secondary perils 
‘secondary’ anymore? 
04
Property capacity reductions:
• Further reduction in capacity 
from incumbents
• Coastal, Earthquake and 
wildfire capacity continue to 
be especially difficult
• Very few new entrants into 
the commercial property 
sector
01
07
Social inflation & 
Litigation Financing 
driving up liability 
verdicts and 
settlements
08
Excess Workers 
Compensation remains 
stable, but retained 
layer may be 
experiencing increased 
claims volume
09
Cyber capacity has 
improved and 
creating stabilized 
terms and conditions 
10
Ransomware 
cyber losses are 
systemic – Expecting 
$10 Trillion by 2025
06
Liability capacity pull 
back and withdrawals 
have been significant 
over the past two 
years
Inflation continues 
to add to the issue 
of valuation across 
all property classes
05
Property
Liability
Cyber
Market Conditions

$540.7
$530.5
$544.8
$559.3
$566.5
$559.1
$538.6
$550.3
$570.7
$567.8
$583.5
$586.9
$607.7
$614.0
$624.4
$653.4
$662.0
$671.6
$673.9
$675.2
$674.2
$673.7
$676.3
$700.9
$717.0
$750.7
$781.5
$742.1
$779.5
$802.2
$812.2
$847.8
$771.9
$819.7
$865.1
$898.5
$1,055.8
$985.3
$983.2
$400
$450
$500
$550
$600
$650
$700
$750
$800
$850
$900
$950
$1,000
$1,050
$1,100
10:Q1
10:Q2
10:Q3
10:Q4
11:Q1
11:Q2
11:Q3
11:Q4
12:Q1
12:Q2
12:Q3
12:Q4
13:Q1
13:Q2
13:Q3
13:Q4
14:Q1
14:Q2
14:Q3
14:Q4
15:Q2
15:Q4
16:Q1
16:Q4
17:Q2
17:Q4
18:Q3
18:Q4
19:Q1
19:Q2
19:Q3
19:Q4
20:Q1
20:Q2
20:Q3
20:Q4
2021
2022
2023Q3
Drop due to near-record 
2011 CAT losses (-4.9%)
2022:
(-6.4%)
Policyholder Surplus is the industry’s financial cushion against large insured events, periods of economic stress and financial market volatility. 
It is also a source of capital to underwrite new risks.
5
The P/C insurance industry entered the COVID-19 pandemic from a 
position of strength and was able to withstand the 9.0% surplus 
decline in Q1 2020 (far less than during the Financial Crisis). 2020 
ended with record surplus. 2021 set another new record, exceeding 
$1 trillion for the first time. Unrealized losses caused surplus to drop 
sharply in 2022.
($ Billions)
.Sources: ISO, A.M .Best, NAIC. Risk and Uncertainty Management Center, University of South Carolina.
Policyholder Surplus (Capacity), 2010: Q1 – 2023: Q3

6
COVID-19 
has had no 
discernable 
net impact on 
pre-COVID 
expectations for 
the combined 
ratio in 2020;
-7.5 pts. due 
to CATs vs. 4.1 
in 2019 
(about twice avg.)
115.8
107.5
100.1
98.4
100.8
92.6
95.7
101.0
99.3
101.1
106.5
102.5
96.4
97.0
97.8
100.7
103.7
99.2
98.9
98.6
99.6
104.5 103.4
90
100
110
120
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22F
23F
As Recently as 2001, 
Insurers Paid Out Nearly 
$1.16 for Every $1 in 
Earned Premiums
Best 
Combined 
Ratio Since 
1949 (87.6)
Avg. CAT 
Losses, More 
Reserve 
Releases
Sandy 
Impacts
Sharply higher CATs 
are driving large 
underwriting losses 
and pricing pressure
Heavy Use of 
Reinsurance Lowered 
Net Losses
Relatively Low CAT 
Losses, Reserve 
Releases
Relatively Low CAT 
Losses, Reserve 
Releases
Higher CAT Losses, 
Shrinking Reserve 
Releases, Toll of Soft 
Market
Lower CAT 
Losses
P/C Insurance Industry Combined Ratio, 2001–2023 F*
**Excludes Mortgage & Financial Guaranty insurers 2008–2014.
Sources: A.M. Best, ISO (2014-2024F).
Pre-COVID 2020 Combined Ratio Est. 99.1 (A.M. Best)
Actual = 98
9M: 23

7
Loss Trends & Market Disruptors

8
34%
34%
25%
22%
19%
19%
17%
14%
14%
13%
Cyber incidents
Business interruption
Macroeconomic developments
Energy crisis
Changes in legislation and regulation
Natural catastrophes
Climate change
Shortage of skilled workforce
Fire, explosion
Political risks and violence
Alliance Risk Barometer 2023
The numbers represent the percentage of all participants who responded (2,712). The numbers do not add up to 100% because more than one risk could be selected.
What are Risk Manager’s Concerns?
The most important global business risks for 2023
Source: Allianz Global Corporate & Specialty

9
Flooding
$70.1b Economic Loss – only 
$20b insured
2018-2022 – More than 
10 severe flood events
Hurricanes
$470.7B+ in economic 
losses (US )
Hurricane Ida, Ian, 
Nicole & Idalia = $95b?
Hilary, first CA Tropical Storm 
since 1939
2018-2022 77 named storms
Wildfires
2021 Burned over 7m acres
$39B in insured loss, *8.68B 
in 2021 alone
2022 = 7.5m acres
17% increase from 2019 to 
2021 in U.S. wildfires and a 
223% increase since 1983
2018-2022 82 $1B+ 
Wildfire events
Tornado/Convective Storm
10 singular $1B+
events
SCS insured losses growing at 
a rate of 8.9% since 1990
Accounted for nearly 58% of 
all global Insured losses
$71B in insured losses due to 
severe convective storm 
through 2023-year end ($60B 
in U.S.)
Uri – 2021 Over 110 deaths 
associated
Estimated $20B+
insured losses
Estimated $5.4B+
insured losses
Elliott – 2022 Over 
65 deaths associated
Largest Q1 loss record
Winter Storms
Recent CAT Losses

Increasing Impact on Liability Market 
Reviver Legislation 
Amendments 
A rise in Sexual Abuse and 
Molestation claims and 
settlements
Reduced Capacity 
reinsurer withdrawals 
have been significant 
over the past two years
Law Enforcement 
Increased focus on policing 
policy and procedures 
as well as pressure on 
Qualified Immunity 
Litigation Financing 
continues to drive large claims 
and 68% of firms 
are using it in 2021
Auto Liability 
Frequency & Severity of 
losses has returned to 
pre COVID figures
Plaintiff Attorney Strategies 
specialization and strategies 
have evolved to get larger 
verdicts and settlements. 
Underwriter Scrutiny 
reinsurers are seeking to 
grow prudently and are 
maintaining a disciplined, 
conservative underwriter 
approach. 
Hyper Social Inflation 
“A Texas jury awarded $300 
billion to the family of a teen 
and her grandmother, who 
were killed in a 2017 crash 
with a drunk driver.” This 
type of verdict is meant to 
send a message to others.
Inflation
Rising cost are increasing the 
size of claims 
Labor Shortage 
everyone is doing 
more with less 
Exclusions
continued restrictions surrounding sexual abuse, Wildfire 
Exclusions, COVID, cyber, opioids and man made chemicals 
(PFAS – new focus)
10

11
The Makings of a Hard Market – Timeline

Days between
billion-dollar disasters
Since the 1980s, the U.S. has faced more frequent climate 
disasters with every passing decade. Between 2020 to 2022, 
the average number of days between billion-dollar disaster 
events within one year dropped to just 18.
Billion-dollar disasters are events where overall damages/costs 
reached or exceeded $1 billion (including CPI adjustment to 2023).
No disasters in 1987 and only in 1988
NO OF DAYS
2020
2015
2010
2005
2000
1990
1995
1985
1980
60
113
85
66
78
48
104
47
74
71
44
44
46
54
73
111
39
64
64
30
51
34
23
47
39
35
23
33
40
16
30
30
30
36
20
13
19
18
14
18
20
2020s average
18 days
1980s average
75 days
Source: NOAA |
12

Toward 
the Future

Property 
Renewal 
Outlook
Continued scrutiny of data (SOV, COPE, ITV with Increased Construction Cost)
• Must go to market with a compelling narrative
Rate increases expected and highly dependent on Wind Season, Reinsurance Market and individual client losses 
Underwriter submission activity remains high – imperative to engage early and access global market
• For the first time in a number of renewal cycles, there are a few new markets writing in the property sector
• Many London markets are targeting premium growth in the 20-30% range, including increased rate on renewal business 
and inflation
Unknown impact of RMS v23
• Atlantic wind model expected to show an average 5%-10% uplift to aggregate industry modelled losses –for some areas, 
could be as much as 20-30%
• The most significant changes are to the Florida/Gulf/Southeast areas and commercial exposures
• Most carriers, however, are still testing/trialling this version
• Anticipated influence on insurer aggregates and pricing likely not fully realized until early 2024
Increased retentions and caps on certain types of exposure
• Windstorm & Severe Convective Storm
Regional Underwriting: Property markets are affected differently across the nation. 
• e.g., West: Wildfire/Earthquake, East: Hurricanes, Midwest: SCS, etc.
Public Entity Space dislocation – leaving buyers underinsured 
14

Liability Renewal 
Outlook
15
Excess liability continues to be a challenge 
Specific Problem areas:
• Aggregate limits – Many carriers are looking to cap their exposure on 
pool programs
• Attachment point/Retentions are being closely examined
• Underwriter scrutiny on Law Enforcement and Sexual Abuse/Misconduct 
coverages
• Emerging Exclusions: PFAS, Biometric Identifiers, Legislative
Insurers reporting loss cost increases in the 10-15% rate. Pricing will be based on 
losses and jurisdiction
Engage incumbent carriers early to gain commitment on renewal. Seeking face time 
with underwriters for complex risks.

Cyber Renewal 
Outlook
Leading insurers have indicated 
“We may have hit rate equilibrium” 
2024 Forecast:
• 15% to 15% increases, at a minimum, for 
“good” risks and most starting much higher
• Lower overall capacity deployment
• Increased per-claim, self-insured retentions 
for poor security posture
• Potential coinsurance percentages added for 
ransomware
• Further reduction of ransomware limit
Requirement to evidence security posture:
• MFA 100% 
• Data Backups
• Endpoint Detection
• Employee Education & Training Programs
16

Workers Compensation 
Leading Concerns
17
Wage Inflation’s impact on premiums & Medical Expense Inflation
Underwriter Concerns: Per Occurrence exposure to CAT loss; rate adequacy; 
changes in the labor market
Investment Yield on Long Tail Coverage
Rate Expectations: Account Specific
Trends to Watch: 
• Increase in state legislative bills filed for Presumptive and PTSD benefits 
• Opioid Epidemic
• Data analytics and AI emerging in claims handling
• Increased severity of workplace injuries
• Mental health exposures
• Medical marijuana
• Increasing Payroll’s impact on premium
Remote Work: Out of State employees & impact on productivity and compliance

18
Property/Casualty 
Coverage overview and 
Budget for 2024/2025

19
City of Glendale 
Presentation Overview
Review of Current Insurance Programs
Property
General Liability
Workers Compensation
Cyber liability
Ancillary Coverages  
Renewal Strategy -Marketing
Insurance Premium Budget Projections 24/25
Parting thoughts on Insurance Renewals

20
City of Glendale 
Property Overview
•
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)
•
Cyber liability limits up to $2M
•
Pollution limits up to $2M
•
Built-in loss control and appraisals

21
Current Property Insurance Overview 
Alliant Insurance 
Property Program 
(APIP) 
2023/2024
Limits
24/25 Updates
Total Insured Values 
$999,051,296
$1,057,880,174
Policy Limit
$1,000,000,000
$1,000,000,000
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
Pollution (APIP)
$2,000,000 (APIP member 
limit)
$2,000000
Expiring Premium
$1,783,110.36

22
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 
Current Earthquake and Flood Overview- in APIP

23
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 Glendale Excess Liability Limits Structure 
$40M
Great American Assurance Company 
$5M xs $35M excess of $1M SIR
$36M
Navigators Specialty Insurance Company
$10M xs $25M excess of $1M SIR
$26M
StarStone Specialty 
$5M xs $20M excess of $1M SIR
$21M
Allied World Assurance Co. (U.S.) Inc.
$10M xs $10M excess of $1M SIR 
$11M
The Princeton Excess and Surplus Lines Insurance Company 
$5M xs $5M excess of $1M SIR
$6M
Safety National Casualty Corporation
$5M excess of $1M SIR 
$1M
$1,000,000 Retention  
Total Annual Premium $2,031,898.28 Including Taxes/ Fees 
*Limits shown do not reflect the applicable Policy Aggregates for each layer participant

25
Current 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
$       5,000,000
Current Retention
$       2,000,000
Presumptive Retention
$        2,500,000
Payroll at Binding
$   160,052,353
Expiring Premium
$            480,477

26
Glendale’s Cyber Liability Coverage 
23/24 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 
Excess Cyber $3M Excess of $2M with Liberty Surplus 
Dedicated  Excess Limits $3M  
Limits are excess of APIP Cyber and drop down to become primary 
dedicated limits should APIP aggregate layer be exhausted 
Excess Cyber $2M excess of $5M
$2,000,000 Dedicated Limits (excess of $5M)
Total Cyber Limits $7M

27
Crime 
Insurance
Overview 
CURRENT 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
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 
$30,750

28
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
Drone Liability coverage
The City owns and insures 34 for liability coverage for $1M in limits. 
Fiduciary Liability (Hudson 
Insurance)
$5,000,000 in Aggregate Limits  
Glendale Section 457 Deferred Compensation Plan - 98742-00
Protects fiduciaries against mismanagement of an employee benefit plans, or plan 
assets. 
Coverages Includes 
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 s
General Liability, Personal Injury (Including Bodily and Property Damage), Fire Damage 
Liability, Non-Owned and Hired Automobile
Airport Owners’ 
and Operators’ 
Liability 
Drones 
Fiduciary
Special Liability 
Insurance 
Program (SLIP)
Current Miscellaneous Insurance Policies 
Overview

29
City of Glendale 
Renewal Strategy
Marketing Process:

Property- Glendale is expected to receive a lower rate increase for their 
property renewal than expiring. The APIP program includes property for 
buildings, contents, auto, equipment breakdown, cyber and pollution coverage. 
Alliant has conducted a soft marketing of each coverage the last few years and 
premiums have been higher once each coverage, and premium is broken out 
separately than they would be as a package in APIP.  

General Liability – Alliant went to the market to find a replacement to Allied 
World Insurance Co (AWAC) as their premium increased by more than 200% 
over expiring.  AWAC currently participates in the $10M excess of $10M layer. 
Alliant was able to find replacement to the layer participation by adding two 
new carriers to replace AWAC.  Bowhead and Upland will each put up $5M in 
limits to make up the $10M layer. We are also working with PRISM for an 
alternative $5M limit that can take over if the pricing and coverage makes 
sense.

30
Glendale Renewal Budget Projections  2024/2025
Current Line of Coverage
Renewal Date
Carrier (s)
2023/2024
Program Cost (Annual)
Estimated % 
Change
2024/2025 Estimated Cost
Alliant Property Insurance Program (APIP)
Includes Property, Boiler & Machinery, Earthquake, Flood, Auto, 
Cyber Liability, and Pollution Liability coverages
7/1/2024
Various Including -
Lexington
$1,783,110.36
24.24%
$2,215,270.30
BBR -Cyber Enhancement over APIP for Notified Individuals-
(250,000 Notified Lives) + Cyber Excess Solutions $3M XS $2M 
7/1/2024
Beazley-Lloyds 
$280,704.00
10.00%
$308,774.40
Excess Cyber $2M XS $5M ($7M total limits)
7/1/2024
Liberty Surplus Insurance 
Corporation
$186,121.20
10.00%
$204,733.32
Excess Liability $1M SIR with $40M Excess Policy Limits  (Note, 
24/25 Renewal SIR will be $2M)
7/1/2024
1. $ 5M Safety National     
2.  $5M X $5M Princeton    
3. $10M X $10M AWAC     
4. $ 5M X $20M StarStone   
5. $10M X $25M Navigators 
6. $ 5M X $35M Great-
American 
$2,031,898.28
27.60%
$2,592,628.96
Alliant Crime Insurance Program (ACIP) 
7/1/2024
National Union Fire 
Insurance Company (AIG)
$30,750.00
17.00%
$35,977.50
Fiduciary Liability
7/10/2024
Hudson Insurance Company
$15,564.00
20.00%
$18,676.80
Airport Liability Airport Owners’ and Operators’ Liability
7/1/2023-
7/1/2026
ACE Property and Casualty 
Insurance Company (Chubb)
$14,393.00
N/A
$14,393.00
Drone Liability (from 23 drones to 34)
7/1/2024
Starr Companies
$18,750.00
32.00%
$24,750.00
Premises Pollution Liability
8/15/2023-
8/15/25
Fireman’s Fund Indemnity 
Corporation
$72,483.55
-100.00%
Special Liability Insurance Program (SLIP)
Regional Public Safety Training Center
9/29/2024
Great American E&S 
Insurance Company
$6,793.97
10.00%
$7,473.37
TOTAL Cost (not including WC) 
$4,440,568.36
22.12%
$5,422,677.65
Excess Workers’ Compensation and 
Employer’s Liability 
7/1/2024
Safety National Casualty 
Corporation 
$480,477.00 
11.26%
$534,575.00

31
Parting Thoughts on 2024/2025 Insurance Renewals 
•
Rates will continue to rise for both property and liability as limits/capacity decrease. 
Alliant will continue to work closely with the City to review coverages and options for 
each line of coverage as needed. 
•
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 put municipalities in the spotlight. 
•
Aging Public Entity infrastructure, undervalued locations, and lack of updates on older 
buildings, will continue to be a concern to the carriers.

Thank you!
Questions?