Amendment_No_2_to_AON_CSA_dated_July_1_2020

Home

Aon Proprietary and Confidential 1 Prepared for: <San Leandro> Introduction Aon Risk Insurance Services West, Inc. (AON) is pleased to submit this proposal to provide actuarial services to City of San Leandro (Client) for the self-insured Workers’ Compensation and General Liability programs. The broad scope of work is to develop estimated outstanding liabilities and funding amounts for future fiscal years. This will provide important data for financial audit statements (including Governmental Accounting Standards Board [GASB] Statement No. 10 compliance) and strategic long-range planning. The conclusions of our work will be provided in a written report. The report will have an executive summary designed to be easily understood by non-actuaries. It will contain a technical section with sufficient information to support all conclusions and to facilitate future analysis. Scope of Work The following is our understanding of the ultimate goals of the project and will serve as a Scope of Work: 1. Estimate Outstanding Losses. Estimate outstanding losses (including allocated loss adjustment expenses [ALAE] and unallocated loss adjustment expenses [ULAE]) as of June 30, 2025. The estimated outstanding losses are the cost of unpaid claims. The estimated outstanding losses include case reserves, the development of known claims and incurred but not reported (IBNR) claims. ALAE are the direct settlement expenses for specific claims, primarily legal expenses. ULAE are general claims administration expenses. The estimated outstanding losses will be provided in both discounted and undiscounted basis, based on the discount rate provided by the Client. 2. Project Ultimate Limited Losses. Project ultimate limited losses (including ALAE) for 2025/26 and 2026/27. The projected ultimate limited losses are the accrual value of losses with accident dates in 2025/26 and 2026/27, regardless of report or payment date. The amounts are limited to the indicated self-insured retentions. Projected ultimate losses will be provided in both discounted and undiscounted basis, based on the discount rate provided by the Client. Docusign Envelope ID: 5622207C-0656-4914-A354-B2777DE998A0