TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 5, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Issue purchase order to Willis Towers Watson Midwest, Inc. to Furnish Property Insurance Coverage for the District in an amount not to exceed $2,770,578.00, Account 101-25000-612290, Requisition 1666284
Body
Dear Sir:
At the Board Meeting of December 1, 2022, in accordance with Contract 22-RFP-12, the Board of Commissioners awarded a purchase order to Willis Towers Watson Midwest, Inc. (Willis) to serve as the District's broker-of-record for property insurance and related services for a three-year period. As allowed by contract, the District elected to extend the term for an additional two years to expire on December 31, 2027. In this capacity, Willis has responsibility for securing quotes from the insurance market for property insurance for the District.
On October 7, 2026, the District received certain quotes and market responses to provide insurance coverage for District property for a one-year period to be effective December 6, 2026. Willis solicited these quotes pursuant to the detailed specifications for property insurance coverage, seeking a minimum of existing terms and conditions, as well as coverage for terrorism risk and difference-in-conditions, and based on updated/indexed property values for property insurance. District property includes buildings, structures, and equipment at water reclamation plants, pumping stations, the Lockport Powerhouse, and offices.
The property insurance market has softened more rapidly than expected, with conditions continuing to improve at an accelerated pace. Insurance carrier appetite remains strong, capacity is abundant, and competition has broadened.
For the 2026 property insurance program, eight insurance carriers were approached for primary coverage. The incumbent provided a quote, and seven carriers declined to quote primarily due to inability to provide terms and pricing without an engineering review, including conducting site surveys of the District’s insurable property. Three insurance carriers provided quotes for terrorism risk property coverage.
The quotes were evaluated by Willis, the Risk Manager, and the Senior Risk Analyst. It is recommended that the District purchase a program of property insurance, through Willis, structured as follows:
Primary: AIG/American Home Assurance Company: Limit of $750,000,000.00 and a Deductible of $15,000,000.00 and Sub Limits of $100,000,000.00 for Earth Movement and $100,000,000.00 for Flood, at a cost of $2,726,148.00. This quote offers coverage that is the same as expiring.
Terrorism: Applied Crisis Underwriters LLC: Limit of $250,000,000.00 and a Deductible of $100,000.00, at a cost of $44,430.00.
For the recommended program, the overall premium is $2,770,578.00, which is a decrease of $153,852.00 (5.34%) over the comparable limits of the expiring program. It is a decrease of $109,422.00 (3.80%) over the total cost of the prior year’s program, with the addition of terrorism limits.
The Diversity Section has reviewed this contract for Willis Towers Watson Midwest, Inc. (Willis), which serves as the District’s intermediary, as required in the State of Illinois, for the purchase of property insurance, and determined that it has met the requirements of Appendix A. The Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE) and/or Small Business Enterprises (SBE) goals are: 20% MBE, 10% WBE and 10% SBE.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Willis Towers Watson Midwest, Inc. in an amount not to exceed $2,770,578.00. This is the total amount for the property program placements.
Funds are available in Account 101-25000-612290.
Requested, James E. Fisher, Director of Human Resources, JEF: BLW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 5, 2026
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