TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 4, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Issue purchase order to Alliant Insurance Services, Inc. for Furnishing Excess Casualty Insurance Coverage for the District in an amount not to exceed $2,126,879.00, Account 101-25000-612290, Requisition 1648716
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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 Mesirow Insurance Services, Inc., whose name was changed to Alliant Insurance Services, Inc. (Alliant) as of May 31, 2024, to serve as the District's broker-of-record for casualty lines of 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, Alliant has responsibility for securing quotes from the insurance market for the excess casualty insurance policies. The current excess casualty insurance policies will expire on December 11, 2025.
On November 18, 2025, the District received certain quotes and market responses which Alliant had solicited pursuant to the detailed specifications in the underwriting submission for a one-year period to be effective December 11, 2025 to provide a tower of excess casualty insurance, including general liability, public officials liability, employment practices liability, law enforcement/police professional liability, employers liability, automobile liability, and excess liability for marine. A liability limit of $25,000,000.00 subject to a self-insured retention (SIR) of $7,500,000.00 was requested.
For the 2025 excess casualty program, forty-one insurance carriers were approached for quotes. Eight carriers provided quotes. Thirty-three carriers declined to offer a quote citing various reasons, including the public entity class of business, particularly in Cook County, and nature of operations.
The quotes have been evaluated by Alliant, the Senior Risk Analyst, the Risk Manager, and the Director of Human Resources. It is recommended that the District purchase a program, through Alliant, with total Liability Limits of $25,000,000.00 over an SIR of $7,500,000.00 at a total program cost of $2,126,879.00 structured as follows:
First Layer: AIG/Lexington Insurance Company: Limit of $5,000,000.00 with an SIR of $7,500,000.00, at a cost of $705,884.00
Second Layer: Limit of $5,000,000.00 excess of the $5,000,000.00 first layer, at a cost of $493,316.00, comprised of Homesite Insurance Company with a Liability Limit of $2,500,000.00, 50% quota share of $5,000,000.00 excess of $5,000,000.00 and Palomar Excess and Surplus Insurance Company with a Liability Limit of $2,500,000.00, 50% quota share of $5,000,000.00 excess of $5,000,000.00
Third Layer: Upland Specialty Insurance Company: Limit of $5,000,000.00 excess of $10,000,000.00, at a cost of $364,358.00
Fourth Layer: Gemini Insurance Company: Limit of $5,000,000.00 excess of $15,000,000.00, at a cost of $315,342.00
Fifth Layer: Westchester Surplus Lines Insurance Company: Limit of $5,000,000.00 excess of $20,000,000.00, at a cost of $247,979.00
For the recommended program, the overall premium is $2,126,879.00, which is an increase of $346,312.00 (19.45%) over the expiring program.
The casualty insurance market continues to see double-digit rate increases as insurers work to keep pace with adverse loss trends. Rising claim costs are driven by legal system abuse, third-party litigation funding, aggressive attorney advertising, evolving societal attitudes, and elevated reinsurance costs.
All insurance carriers being recommended for this placement are licensed/allowed to do business in Illinois and have A.M. Best Company ratings of A- (Excellent), VIII ($100 Million to $250 Million) or better.
The Diversity Section has reviewed the contract for Alliant Insurance Services, Inc., which serves as the District’s intermediary as required in the State of Illinois for the purchase of excess casualty 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 Alliant Insurance Services, Inc. in an amount not to exceed $2,126,879.00. This is the total amount for the excess casualty program placements.
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 December 4, 2025
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