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Insurance fund warns of surging reinsurance and medical costs; Wildwood Crest renews GIF membership
Summary
A representative of the Atlantic County Municipal Joint Insurance Fund told the Wildwood Crest council that reinsurance, medical inflation and statutory changes are raising municipal insurance costs; the council voted to renew borough membership in the GIF and approved related consent resolutions.
Wildwood Crest — A guest presenter from the Atlantic County Municipal Joint Insurance Fund told the borough council that municipalities are facing sharp insurance cost pressures driven by reinsurance-market hardening, medical-cost inflation and statutory changes affecting workers’ compensation.
Paul (GIF), introduced by borough staff, said the fund has seen a "46% increase in the reinsurance for property" and cited substantial increases in medical costs and other drivers such as pension-offset changes and social inflation in police-liability claims. He outlined member benefits including safety and training programs, a cyber risk management fund with security-tiered deductibles, and returned dividends (Wildwood Crest received about $43,000 this year).
Why it matters: Municipalities that participate in joint insurance funds share risks and buy reinsurance jointly; rapid increases in reinsurance and medical costs can raise future premiums, affect budget planning, and change the fiscal calculus for small shore towns.
Council action: Following the presentation, the council adopted a resolution authorizing renewal of the borough’s membership in the Atlantic County Municipal Joint Insurance Fund. Council members voted by roll call in favor of the renewal.
Key figures and programs cited by the GIF representative: a reported $13.6 million surplus and over $46 million in cash on hand for the GIF; dividends returned to members; a focus on safety training (manager/supervisory and police training) and transitional-duty programs that staff said have reduced lost-time claims; a cyber program that ties deductibles to a member’s security posture.
What officials said: Paul and borough staff described the GIF as member-driven and noted that joint purchase of reinsurance across many municipalities provides leverage in a difficult market. The council said it will proceed with renewal paperwork and continue to monitor insurance and budget impacts.
What’s next: Risk-management staff will execute the renewal contract and report back on any changes to the borough’s premiums or coverage at future meetings.
