Parish casualty insurer choice on hold

Terrebonne Parish’s administration chose a Metairie-based firm to provide cost-effective casualty insurance and asked for the council’s approval at Monday’s Policy, Procedure and Legal Committee meeting.

The administration recommended Eagan Insurance Agency saying that, after interviews and a review of a low-cost proposal, the company would provide substantial savings to the parish. A council vote is needed to begin contractual work.

Janell Brierley, parish director of risk management, reported that casualty insurance has cost the parish $99,000 in brokerage fees over the last three years. Eagan proposed an $80,000 fee for three years of service, saving the parish $19,000.

The council agreed to hold action to further review the incumbent company and local agency, Ledet Insurance.

According to Brierley, eight brokerage companies were interviewed after reviewing applications, including Eagan Insurance, Gallagher Insurance n who will provide the parish property insurance beginning January 2007, and previous property insurer, USI.

Marc Eagan represented Eagan Insurance Agency at the committee meeting and the company reduced commission fees to reduce parish costs. Before, commission dollars were built into the premium, but now brokers tend to separate commission percentage from the total service cost and implement a flat-rate fee, he said.

“We didn’t think we needed some 15 percent commission to do that,” said Eagan.

Councilwoman Kim Elfert said even though the administration had made its recommendation, Ledet should be granted the discussion that was promised. She asked to postpone the selection of a broker to allow an extra two weeks to meet with the current insurers.

“Our recommendation stands firm,” said Parish President Don Schwab. “I don’t know why [the council] tabled it. Nobody in our administration knows. Perhaps they want to revisit it but our recommendation will stand.”

The administration asked that the council make its decision sooner than later. Contracting a broker is a six-month process and the present insurance will end April 1, 2007, Brierley said.

(Posted Nov. 8, 2006)