HomeMy WebLinkAbout26-0009 - 2026-01-06 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 26-0009
pdTtA4 To the Mayor and Members of the City Council January 6, 2026
Y Page 1 of 2
*a
fQ,SUBJECT: INSURANCE PROCUREMENT— COST SAVINGS ACHIEVED
Purpose
This Informal Report summarizes the City of Fort Worth's recent property insurance procurement efforts and
highlights significant cost savings achieved through strategic market engagement, broker selection, and
improved risk positioning.
Background
The Risk Management Department annually procures property insurance coverage to protect City assets
and ensure adequate financial protection. This process includes asset valuation, preparation of the
Statement of Values (SOV), and competitive marketing of coverage through a commercial insurance broker
to domestic and international insurers. Over the past several years, the property insurance market has
experienced sustained rate increases. The City's total property insurance premium increased from $1.51
million in 2017 to $7.78 million in 2023, driven by market conditions, growth in City assets, and insurer
pricing practices that did not fully reflect the City's strong risk profile.
Actions Taken
To address rising costs, the City implemented the following actions:
• Conducted enhanced asset valuation and data validation to strengthen insurer confidence;
• Emphasized the City's strong safety programs, loss mitigation efforts, and data management
practices;
• Re -marketed the property insurance program to expand competition among insurers;
• Introduced new carriers into the first layer of coverage to improve pricing leverage; and
• Selected a new broker of record, Marsh McLennan LLC (formerly McGriff), through a competitive
RFP process in 2025.
Financial Results and Savings
These efforts produced measurable and sustained cost reductions:
Policy Years 2024-2025:
o Premium reduced from $7,778,861 to $6,604,256
o Savings achieved: $1,174,605
Policy Year 2025-2026:
o Premium further reduced to $5,765,749.51
o Additional savings: $838,506
Total savings over two policy years:
o More than $2.0 million
These savings were achieved while maintaining appropriate coverage limits across a diversified insurance
tower consisting of 26 participating insurers, protecting City assets valued at approximately $3.3 billion.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 26-0009
pdTtA4 To the Mayor and Members of the City Council January 6, 2026
Y Page 2 of 2
*a
SUBJECT: INSURANCE PROCUREMENT— COST SAVINGS ACHIEVED
Conclusion
Through proactive risk management, disciplined market engagement, and competitive broker selection, the
City successfully reversed a multi-yeartrend of escalating property insurance costs. The results demonstrate
strong fiscal stewardship, effective use of competitive procurement, and continued protection of City assets
at a significantly reduced cost to taxpayers
For questions regarding this Informal Report please contact Donnette Murphy, Property and Casualty
Manager at (817) 392-7784 or Tony Rousseau, Deputy Finance Director, at (817) 392-8338.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS