TO: AC Transit Board of Directors
FROM: Jill A. Sprague, General Counsel
SUBJECT: Independent Risk Bearing Analysis Report
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving a report from Albert Risk analyzing the District's current insurance program and risk bearing capacity. [Requested by Directors Peeples and Harper - 6/27/18]
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
The advantage of receiving this report is that it will provide the District with the ability to more accurately access the value of its current insurance program, consider alternative risk financing options, and determine if there are more advantageous risk transfer options available to it.
BUDGETARY/FISCAL IMPACT:
There are no fiscal impacts related to receiving this report.
BACKGROUND/RATIONALE:
During the District's 2018-2019 insurance program renewal cycle, the Board requested that the Claims and Liability Department issue a Request for Proposals (RFP) for an independent analysis of the District' optimal risk-bearing capacity and the feasibility of alternative options to the District's current insurance program. The analysis was to include, among other things, an assessment of the feasibility of fully self-insuring the Workers' Compensation and Commercial Property coverage lines.
The District's Board of Directors commissioned Albert Risk to assess the District's optimal risk-bearing capacity, inclusive of the feasibility of fully self-insuring the workers' compensation, property, and commercial crime loss exposures. The analysis included but was not limited to, a review of the District's historical and current insurance programs, an actuarial analysis of the District's historical financials, and the benchmarking of AC Transit's insurance program against comparable California transit agencies.
Based on the requested scope of work and resulting analysis in this report, Albert Risk makes the following three (3) recommendations:
1. Conti...
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