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South Windsor committee hears insurer: medical claims rise, cyber and lawsuit coverage reviewed
Summary
Kerma presenters told the South Windsor insurance committee that recent quarters have pushed the plan’s rolling claims average higher, with several high‑cost claimants driving stop‑loss reimbursements; the committee discussed cyber renewals and a $10,000 endorsement that applied to a recent election lawsuit.
The South Windsor Insurance/Benefits Committee heard a detailed update from its insurance consultant on plan performance and upcoming renewals, and approved the minutes from its March meeting.
Presenter S4, speaking for the insurer’s review team, said quarterly claims per employee are currently above the 12‑month rolling average and cautioned that "one month doesn't make a trend," while noting the most recent full quarter (Jan–Mar) ran hotter than the prior 12 months. S4 told the committee that plan‑year‑to‑date total plan costs compare to budget at about 108.3%, meaning the plan has spent somewhat more than budget year to date.
Why it matters: rising medical volatility increases pressure on stop‑loss and budget lines and can affect premium projections for the town and the board of education. S4 said the board of education side has seen some high claims but that, year to date, high‑cost claimant net burden is modest relative to last year.
On high‑cost claims, S4 reported that eight board of education claimants had exceeded the $200,000 ISL deductible for about $605,000 in reimbursements, while four town claimants had exceeded that threshold for about $413,000 so far in the policy year. "We're using the stop‑loss insurance considerably more this year," S4 said, but added the net burden of large claimants may still come in similar to prior years when the full year is tallied.
The committee also reviewed dental and workers' compensation details. S4 said dental is running favorably (about 85.6% of budget year to date) and that the dental program will move to a larger provider network called the essential choice on July 1. Presenter S8 explained workers' compensation measures and reported a three‑year experience modification factor of 1.24, noting that a handful of high‑dollar claims across multiple departments (police, public works, schools, custodial) have driven the mod upward.
Committee members pressed for practical takeaways. Presenter S8 said lapse (property/liability/auto) lines compare well to peers and that the town’s overall picture is "doing really well" on that side, while conceding workers' comp remains an area to watch but is improving. The presenters said they would prepare updated peer comparisons for the next meeting.
Coverage renewals and litigation question: the presenters told the committee that several cyber and crime policies renew on July 1 (town cyber with Tokyo Marine; crime and fiduciary with Hanover) and that the board of education’s cyber (Cowbell) renews Aug. 1. Committee member S5 asked whether the town could obtain broader coverage after learning a recent election‑related claim triggered a $10,000 endorsement for nonmonetary judgments. Presenter S8 said the $10,000 limit was specific to a nonmonetary endorsement and that the town’s public‑officials liability program carries limits up to $11,000,000 for covered monetary damages; S8 said they would investigate ancillary policies or endorsements to increase protections if desired.
Action and next steps: the committee approved the March 11, 2026 minutes by voice vote. Presenters were asked to deliver updated peer‑comparison data and to research options for adjusting endorsements or ancillary coverages tied to nonmonetary claims. Chair S1 scheduled the next meeting for Sept. 9, 2026.
Sources: statements and figures presented on the committee record by the insurer/consultant presenters (transcript labels S4 and S8) and motions recorded at the meeting.
