CIS Announces 2026 Rates for Property, Liability, Cyber, and 2027 Rates for Employee Benefits

Public entities across Oregon are navigating a challenging environment. Claims are more complex. Healthcare costs continue to climb. Litigation pressures remain high.

The CIS Board of Trustees met and approved rates for upcoming PC Trust and Benefits Trusts renewals, maintaining the not-to-exceed rates presented earlier this year during the Annual Report session of the CIS Annual Conference in late February. Those rates reflect current claims experience, regional and national cost trends, and CIS’ long‑term approach to financial stability as a member‑owned risk pool.

As a member‑owned, member‑governed organization, CIS approaches rate setting with a long view — using reserves deliberately, responding to real claims data, and focusing on prevention and engagement to help members manage costs over time.

Property and Liability: Improved Results Translate Into Rate Relief

For the 2026 policy year, the CIS Board approved a combined property and casualty trust decrease of 3.25%, reflecting improved program performance and favorable reinsurance outcomes.

“This was one of the strongest property outcomes we’ve had in years,” said CIS’ Executive Director Patrick Priest, noting that reinsurance negotiations and market conditions helped deliver rate relief for members while preserving the long‑term strength of the program.

General and Auto Liability

The combined general and auto liability increase is 1.64%, remaining consistent with last year and well below broader inflationary pressures.

“Liability remains almost identical to last year and below trend,” said Underwriting and Analytics Director Trent McGath. “That reflects continued engagement in risk management and close alignment between rates and actual loss experience.”

Average impacts by exposure include:

• Members with no law enforcement or jail exposure: average 2.4% decrease

• Members with law enforcement and no jail: average 1.8% increase

• Members with law enforcement and jail exposure: average 2.5% increase

• Auto liability: nominal 1% increase

Final rates will vary based on exposure changes, plan selection, coverage limits above $5 million, best‑practice survey results, and individual claims experience.

Property and Auto Physical Damage

• Property rates decrease 12%

• Auto physical damage rates decrease 8.5%

CIS insures $16.5 billion in total property values, and Trent attributed the decreases to a softening reinsurance market and expanded carrier participation following a competitive marketing process. Properties appraised in 2025 will override 4% property trending placed on all non-appraised properties.

Cyber Coverage: Structure Stable Heading Into 2026

CIS’ cyber program structure remains unchanged for 2026 following revisions made in the prior policy year. The two‑tier approach continues to offer flexibility while maintaining affordability.

• Tier 1 (Pool Coverage): $100,000 limit, no application required

• Tier 2 (Ceded Coverage): limits up to $2 million with a $10 million aggregate

For 2026, Tier 2 rates remain flat, while Tier 1 will see an increase of less than 2%.

Employee Benefits: Rising Medical Costs Drive Increases

Employee benefits remain the most cost‑pressured area for 2026. CIS reported projected medical claims increases of 9% to 11.5%, driven by rising utilization, high‑cost claims, and accelerating specialty drug expenses.

“In 2024, we experienced our largest medical claim ever — over $4 million,” said Benefits Director Mike Beyrouty. “And the following year, we saw another multi‑million‑dollar claim nearly the same size. That’s the reality the healthcare industry is facing right now.”

Mike noted that CIS is also seeing rapid growth in gene‑therapy and infusion drugs, some costing hundreds of thousands of dollars per treatment, with ongoing costs that can exceed $1 million annually per patient.

“These costs stack year after year,” he said. “Medical inflation continues to outpace CPI, and every pool, every carrier, is dealing with the same pressure.”

Historically, CIS has used reserves to help stabilize rates. Over the past five years, average pooled self‑funded medical increases have been about 4.5% for cities and 5.6% for counties.

Because medical inflation is rising so rapidly, using reserves again had the potential to make future renewals even more challenging. The CIS Board of Trustees chose not to use reserves for the 2027 renewal, which left us with some very hard decisions to make.

We know our members’ budgets are tight and passing on a large increase only adds additional pressure. The CIS Board of Trustees spent multiple meetings reviewing the Benefits plans making adjustments and cutting out any unnecessary expenses, all while maintaining the core value of CIS Benefits. This hard work lowered the overall increase by around 6%, helping our members budget while making our program more resilient over time.

The rates approved by the Board in late May were first outlined for members during the Annual Report presentation at the CIS Annual Conference, providing early visibility to support local budgeting and planning.

2027 Not‑to‑Exceed Benefits Rates

(Experience‑rated groups are managed separately.)

Cities – Medical (Groups under 100)

• CIS/Regence: 13.6%

• CIS/VSP: 2%

• Kaiser (all groups): 5.5%

• Surest: 14%

Cities – Dental

• Delta Dental: 2%

• Willamette Dental: 2%

• Kaiser Dental: 3.5%

Counties – Medical (Groups under 100)

• CIS/Regence: 14%

• CIS/VSP: 2%

• Kaiser (all groups): 5.5%

• Surest: 14%

Counties – Dental

• Delta Dental: 2%

• Willamette Dental: 2%

• Kaiser Dental: 3.5%

Life and disability coverages will see modest increases in 2027. Basic life insurance increases 3%, while supplemental life increases 3.3%. Accidental death and dismemberment and statutory life rates remain flat. Disability rates increase modestly as well, with long‑term disability increasing 3% and short‑term disability increasing 3.5%. Most voluntary benefits, including trauma plans and identity theft protection, will remain rate holds.

Financial Strength Supports Long‑Term Stability

At year’s end, CIS reported a consolidated net position of $245 million, an increase of 7.5% from the prior year, with all trusts remaining within actuarially recommended target ranges.

“Our reserves exist for moments like this,” Patrick said. “They stabilize rates, absorb volatility, and allow us to take a long‑term view rather than reacting to short‑term swings.”

That long‑term focus isn’t abstract. It guides daily decisions about coverage, prevention, and cost management — all in service of helping Oregon’s cities and counties become safer, stronger, and healthier.

Multi‑Coverage Discount Guide

As a member‑owned risk pool, CIS is designed so members benefit when they participate together. Placing multiple coverages within the pool supports long‑term financial stability and helps manage costs across the system. Those efficiencies are returned directly to members through multi‑coverage discounts. The guide below shows how adding coverages can unlock discounts across participating lines.