Richard Terlecki, CPCU, ARM ARe
Area Senior Vice President
Arthur J. Gallagher & Co., Orlando, Fla.
Managing Risk, Saving Jobs
Cash-strapped states these days are doing everything they can to cut costs, and Richard Terlecki, the Orlando, Fla.-based area senior vice president with Arthur J. Gallagher Risk Management Services Inc., is happy to oblige.
Take Minnesota as an example. With the state facing a $5 billion budget shortfall last year, every department was ordered to reduce expenses by a certain amount or the entire state workforce would face layoffs. Terlecki was able to reduce the state's property insurance premium by almost 50 percent -- in excess of $1 million -- and no one was laid off.
"The brokerage fees that AJG is charging us are competitive and the rate for reinsurance that we purchase has bettered our current rate by a large percentage," said Minnesota's state program administrator Dave Agren. "The combination of a lower brokerage fee and lower cost of reinsurance saved the state a substantial amount of money."
Terklecki also became Texas' property broker in late January 2011 and had to negotiate the renewal program in less than 45 days. He was able to negotiate a reduction in program values by more than $1 million, and restructured the program so that it was the first in Texas to have a "hurricane" instead of the much more restrictive "named windstorm" deductible. Terklecki was able to increase the state of Idaho's earthquake limit to $150 million at a very competitive price, to assuage concerns amidst all the recent natural disasters.
February 21, 2012
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