Times Are Changing: Important Questions on Educational Risk
In the last five years, there have been many new carriers focused on insuring education risks. As the landscape changes as it relates to exposures, loss experience, competition and reinsurer appetite, many carriers and programs have been turned upside down. This is a great time for educational risk as new players bring needed competition, enhanced coverage forms and innovative services. But, this also comes at a price for some schools with increased underwriting scrutiny, coverage limitations and a ton of new supplemental applications.
We’ve learned that some schools may face premium increases at their next insurance renewal. This can be attributed to loss experience, lack of controls to reduce claims and a lack of underwriting profitability. In some cases, this is due to carriers not underwriting the risk correctly in the first place putting the need to undercut rate and buy the risk ahead of pricing stability and a long-term carrier/client partnership. Whether positive and/or negatives changes are on the horizon for your school, you should consider the following:
- Has your current broker or agent informed you of changes on the horizon?
- Have they properly positioned you in making your school a better risk through the improvement of your claims experience through concentrated loss control and safety efforts?
- Have they completed a specialized education risk assessment of your exposures?
- Have they outlined for carrier underwriters what you have accomplished in the way of establishing best practices and protocols to reduce your overall cost of risk?
- Have they partnered with outside vendors to provide services not typically provided by brokers and agents?
- Have they prepared an aggressive strategy to seek carrier options and risk financing alternatives? Are they prepared to create competition or are they resting on their laurels?
- Have they completed a loss analysis and priced the risk to better negotiate renewal terms and conditions?
It’s a great time to take advantage of changes in the insurance marketplace. However, it’s very important that you consider working with a broker that has a passion for making schools better by going the extra mile in every step along the way.
Hold them accountable by requiring them to meet with you early to set a well thought out strategy and to complete the necessary review of program options in order for you to make the proper decisions about your insurance and risk management program. In the end, it will be well worth the effort and put you on a better path to reducing your cost of risk and continuing your mission.
To learn more about minimizing risk for your educational institution, chat with us!
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