Council hears recommendation to hire USI as city insurance broker; firm cites potential savings

City staff told the Committee of the Whole on June 23 that an RFP for insurance services returned seven proposals and recommended selecting USI as the city's insurance broker. The presenter said USI is locally present and familiar with public‑sector requirements.

A USI representative described the firm's approach: negotiating carrier proposals, reviewing stop‑loss underwriting, providing pharmacy consultants and compliance attorneys, and offering a fixed fee arrangement (not commission) to align incentives with the city and employees. The presenter cited a prior intervention in 2022 that reduced an initial 13% stop‑loss renewal increase to a -2% outcome and estimated about $500,000 in savings for that renewal. The firm also estimated potential pharmacy savings of $150,000 under its recommended approach.

Councilors asked clarifying questions about existing arrangements: the transcript names Benacon (also spelled "Benecor" in places) and the Pimmic consortium as current stop‑loss/consortium arrangements and Highmark as a carrier for some retiree coverage. Councillors asked for quarterly reporting on financial results if the broker is hired and to see documentation that the firm is delivering promised savings. USI representatives said they could provide reporting and a benefit resource center for city employees at no additional cost.

The transcript records a committee discussion and questions but does not capture a formal committee vote or contract award in the excerpt provided.