The Insurance Challenges Facing Nonprofits – Our Interview With the Nonprofit Risk Management Center
Posted on: September 30, 2020 by Care Providers Insurance
In this interview with the Nonprofit Risk Management Center, our Northeast Underwriting Manager, Ed Partridge, provides an overview of the insurance challenges facing nonprofits as well as how the Care Providers Insurance team is pivoting to support our policy holders.
What changes are happening in the insurance industry that nonprofit leaders should be focused and aware of?
Whether it’s carrier appetite, rate push or new sources of funding, there are a lot of changes happening in the nonprofit insurance space. As a result, some key carrier players have exited the nonprofit marketplace, while others have scaled back on their coverage limits due to various abuse allegations, court findings or changing regulations. The resulting changes have led many nonprofit leaders to ask themselves some important questions about their long-term sustainability goals. Nowadays it is less common to see nonprofits laser-focused on just one area as their missions have grown to support other needs within their communities. With the ongoing fluctuation, nonprofit leaders really need to take a step back and look at the external environment. What are the most pressing needs of your communities and how can you realign your services to meet them?
Another important question to ask that will be critical moving forward — what is your loss data telling you? What we have seen a lot of is how much loss happened in the last year (pandemic related and otherwise) and how few insureds got to the root of why those losses occurred in the first place. Leaning on your insurance partner to do a root cause analysis with you of what is driving your loss trends will be an important step in not only helping you better protect your employees and clients, but also to keep your insurance costs down long term.
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