Insurance Questions at Shreveport City Hall
The changeover of insurance brokers for Shreveport is causing quite a stir at City Hall.
The big debate is not really about which companies will have the business. It's more about how the cancellation was handled. Risk Services of Louisiana handles the workers comp and airport insurance needs while the Gallagher Company handles property and casualty claims. Risk Services has handled the city's policies for 30 years. Gallagher has had the deal for nearly 20 years.
Part of the problem is that the city has not done a request for proposals for these contracts in the past dozen or so years. Mayor Perkins says he does plan on changing that policy and do an RFP in the future, but he wanted to change the providers now in an effort to save money. He also wants more minorities included in the process.
But the big question is who gave the authority for a letter calling for the change to go out on December 28th when Perkins was not yet Mayor. Did former Mayor Ollie Tyler authorize this change? Tyler tells KEEL News:
I had no knowledge that this transaction occurred until this week. No staff member was authorized to send out a letter or any communication regarding insurance cancellation under my administration.
But this letter went out:
KEEL reached out to Risk Management Director Kelly to find out who directed her to send out this letter and we have not heard back from her yet.
KEEL did find a violation from the State Insurance Department involving a representative of 3rd Millennium, Roddrelle Sykes who works for the Frost Insurance Agency in Dallas. That company is reportedly in discussions about a possible contract with the city. Click here to see the citation involving Sykes. Sykes, has contributed money to the Adrian Perkins campaign.
Mayor Perkins did send out this letter in January regarding insurance coverage.
Perkins recently told the City Council there is no new deal yet with a broker to handle the property and casualty insurance. This part of the story is developing and we will follow up.