TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 6, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting 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 $2,880,000.00, Account 101-25000-612290, Requisition 1646145
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 12, 2025, the District received a quote and market responses which Willis had solicited pursuant to the detailed specifications for property insurance coverage, seeking a minimum of existing terms and conditions, and based on updated/indexed property values for property insurance, for a one-year period to be effective December 6, 2025, to provide insurance coverage for District property. District property includes buildings, structures, and equipment at water reclamation plants, pumping stations, the Lockport Powerhouse, and offices.
For the 2025 property insurance program, five insurance carriers were approached. The incumbent provided a quote, and four carriers declined to quote primarily due to inability to provide competitive pricing.
The quote provided by the incumbent for the District’s property insurance for 2025 is:
AIG/American Home Assurance Company quoted a Limit of $750,000,000.00, with a Deductible of $15,000,000.00 and Sublimits of $100,000,000.00 for Earth Movement and $100,000,000.00 for Flood at a cost of $2,880,000.00. This quote offers limits of coverage that are the same as expiring.
The 2025 property insurance market continues to be stable and well capitalized, driven by profitable underwriting results, higher investment returns, strong premium growth, and reduced inflationary pressures.
The quotes were evaluated by Willis, the Risk Manager, and the Senior Risk Analyst. It is recommended that the District purchase property insurance coverage from AIG/American Home Assurance Company, through Willis, with a policy limit of $750,000,000.00 and a deductible of $15,000,000.00 at a cost of $2,880,000.00. The AIG quote of $2,880,000.00 is $191,000.00 (6.22%) less than the expiring program. This decrease is due to a decrease of approximately 7.40% in the rate of insurance.
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.
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, 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 6, 2025
Attachment