By Mayor Daniel T. Rodrick
As the Mayor of Toms River, I firmly believe in the importance of fiscal responsibility and transparency in governance. Today, I want to share an important step we are taking to improve our town’s financial health and ensure better insurance coverage for our township: we are actively seeking new options to replace the JIF (Joint Insurance Fund) for General Liability, Property, Casualty, Worker Compensation, Employee and Environmental Liability insurance.
For decades, the Ocean County Joint Insurance Fund, managed by Connor Strong, has held a dominant position in the county’s insurance market. This monopoly has stifled competition, leaving municipalities like ours without viable alternatives as rates continued to climb by double-digit percentages each year.
As a member of the town council, I repeatedly urged the previous administration to explore alternative options for both the JIF and our employee health benefits plan, but those requests fell on deaf ears. When I took office, one of our first major actions was to leave Connor Strong behind and shop around for better health insurance options.
This decision has since proven fruitful, saving Toms River Township over $6 million to date. The significant savings we experienced from that decision demonstrates that exploring competitive options can yield transformative results. Inspired by that success, we are now setting our sights on the rest of our insurance. Our goal is clear: to secure a more cost-effective policy while also ensuring we have the appropriate coverage.
The reality is that Connor Strong, a politically connected firm, has enjoyed a virtual monopoly in Ocean County and beyond.
The JIF has been the source of many concerning news articles in the past few weeks:
- NJ watchdog’s probe of public insurance funds alleges ‘covert takeover’ by private interests
- New Jersey politicians silent on watchdog report detailing covert takeover of public insurance funds
- Review Finds Local Governments’ Health Insurance Funds Have Conflicts of Interest and Public Contracting Violations
- New Jersey Comptroller Flags Alleged Conflicts in Public Insurance Funds
This lack of competition can lead to complacency and inadequate service, a concern that has been highlighted by our difficulties in obtaining satisfactory coverage from the JIF, particularly in relation to two lawsuits filed against our town during the prior administration.
We believe our coverage limits for those lawsuits should be $4 Million, but the insurance company is trying to get away with offering just $1 Million in coverage, which is limiting our ability to settle these suits. We pay millions every year to the JIF, and now when it’s time for them to cover us, they want to leave us holding the bag.
These coverage issues not only place a financial burden on our municipality, but also jeopardize the interests of our residents. As we move forward with our search for new insurance solutions, we are also considering taking legal action for a declaratory judgment to confirm that the JIF upholds its obligation to provide coverage in these lawsuits.
This proactive approach underscores our commitment to ensuring that Toms River receives the support it deserves. By exploring new options for insurance coverage, I am hopeful that we will not only find substantial savings but also better protect our town’s interests.
This is not just about budgeting; it is about providing peace of mind to our residents, ensuring that they can rely on their local government to be responsible stewards of their tax dollars. I urge the community to stay engaged as we navigate this important process.
Together, we can move Toms River toward a future marked by financial prudence and robust support for all our residents. Sincerely, Daniel T. Rodrick Mayor of Toms River
