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|October 28, 2021 City Council Regular Meeting|
24. Authorize the City Manager to Execute a Contract for Voluntary Employee Accident Insurance with Hartford Financial Services, Inc. at No Cost to the City. The Human Resources Department offers eligible employees and dependents access to voluntary accident insurance coverage. The estimated premium is paid 100% by those members who are enrolled in the insurance coverage.
Recommend approval to award an annual contract for voluntary employee accident insurance to Hartford Financial Services Group, Inc. with no cost to the City of Savannah.
The Human Resources Department offers eligible employees and dependents access to voluntary accident insurance coverage. The estimated premium is paid 100% by those members who are enrolled in the insurance coverage. There is no cost to the City of Savannah for this service and USI Insurance Services manages the enrollment, billing, customer service and claims submission for all voluntary worksite benefits. The policy will be effective from January 1, 2022 with a rate guarantee for two years (January 1, 2024). There are 278 employees enrolled in the Accident plan.
The current vendor is Allstate. Marketing efforts show Allstate’s rates are higher than the market and with lesser benefits. Hartford rates are guaranteed for two years. Hartford Financial Services Group, Inc. states rate increases are very rare. Hartford is recommended due to the richness of benefits and low rates. The approval of the Hartford Financial Services Group, Inc. will result in an over 50% decrease in employee premiums with an increase in coverage for members.
This Request for Proposals (RFP) was facilitated by USI Insurance Services on behalf of the City of Savannah. USI Insurance Services is the City’s employee benefits consultant that negotiates, oversees and advertises the City’s benefits contracts. This RFP was sent out to nine proposers with six proposers responding. Of the six only three were competitive in the market analysis done by USI Insurance Services.
The proposal was advertised, opened, and reviewed. The contract term expires on December 31, 2022. This contract has three (3) renewals and two (2) extensions. Delivery: As needed. Terms: Net 30 days.
The proposers were:
B.P. Hartford Financial Services Group, Inc (690 Asylum Avenue, Hartford, CT 06155)(D) $No Cost
Allstate Insurance Company (2775 Sanders Road, Northbrook, IL 60062)(D)
Guardian Life Insurance Company of America (10 Hudson Yards, New York, NY 10001) (D)
A pre-proposal conference was not conducted. (D) Indicates non-local, non-DBE business. Recommend approval.
Jeff Grant, Human Resources Senior Director
No Cost to the City
Exhibit 1- Funding Verification - Voluntary Employee Accident Insurance
Exhibit 2- Purchasing Notes - Voluntary Employee Accident Insurance.pdf