Shrewsbury officials on the Board of Aldermen met with outside insurance advisors on options to reduce rising health and property/casualty insurance costs and to secure better long-term pricing.

The board heard presentations from Dustin (financial staff), Janice (health-plan consultant), Melissa (account executive for property/casualty), and Hank (insurance representative). Janice described the city's current “fully insured with an HRA” approach and said moving to a level-funded plan would be “the first step in kind of taking control of your insurance costs,” because it yields claims data the city does not now receive. Janice added that employers sometimes progress from level-funded plans to partial or full self-funding over several years to capture savings and to tailor wellness programs to identified needs.

Dustin told the board the city must consider alternatives because “with insurance costs going up the way it is, we have to look at other methods and do things better and modernize what we're doing to able to say competitive in market.” Janice and Dustin reviewed options including level-funded plans, group captives, stop-loss insurance, and reference-based pricing; Janice warned that reference-based pricing can disrupt employees because providers may reject lower-than-market payments.

On property and liability lines, Melissa told the board market shifts are producing higher renewals and higher deductibles. She said the city’s property coverage with Hartford showed a minimum 25% increase and an added $10,000 deductible for some perils; auto and general liability with Travelers were also facing 25% or higher increases and increased deductibles. Melissa recommended cleaning up scheduled items and using carrier loss-control services and training (for example, ergonomics, lifting and slip/fall prevention) to reduce frequency and severity of claims.

Both brokers emphasized using carrier-provided loss-control resources and capturing evidence of city safety and training programs when submitting renewals. Melissa also urged the board to consider fiduciary liability coverage for employee benefit plan administration; she estimated a small premium (she cited “a couple thousand dollars, maybe 3 to $5,000 at most”) for the city’s size to cover errors in benefits administration.

Board members asked clarifying questions about timing, carrier options and what specific lines were affected. The presentation closed with an encouragement to pursue level-funded quotes this renewal cycle to start building claims data and to engage carriers in loss-control visits.

The board did not take a formal vote on changes to coverage at the meeting; the session served as an informational briefing and direction to staff to pursue options.

Shrewsbury’s next health-plan renewal occurs in October; carriers and brokers will be asked for detailed quotes and loss-control proposals ahead of that date.