TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Willis Towers Watson Midwest, Inc. to Furnish Cyber Insurance Coverage for the District in an amount not to exceed $119,984.00, Account 101-25000-612290, Requisition 1622040
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 cyber insurance and related services for a three-year period. In this capacity, Willis has responsibility for securing quotes from the insurance market for cyber insurance for the District.
On July 19, 2024, the District received certain quotes and market responses which Willis solicited pursuant to the detailed specifications for cyber insurance including aggregate policy limit options of $3,000,000.00 and $5,000,000.00, and a self-insured retention of $500,000.00 for a one-year period to be effective on October 4, 2024.
For the 2024 placement, fourteen insurance carriers were approached. Three carriers provided quotes at the limits and retention level requested. One carrier provided indications at the limits and retentions level requested, but with significantly higher premium. The other ten carriers declined. The insurance carriers who specifically declined to quote cited the inability to underwrite public entity business or to offer competitive pricing.
The quotes were evaluated by Willis, the Risk Manager and the Senior Risk Analyst. It is recommended that the District purchase cyber insurance coverage from AXIS Insurance Company, through Willis, with an aggregate policy limit of $5,000,000.00 and a self-insured retention of $500,000.00 at a cost of $119,984.00, which is a decrease of $15,785.00 (11.63%) over the prior year’s premium.
The Diversity Section has reviewed the contract for Willis Towers Watson Midwest, Inc., which serves as the District’s intermediary, as required by the State of Illinois, for the purchase of cyber 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 $119,984.00.
Funds are available in Account 101-25000-612290.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK: BLW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 8, 2024
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