Authors: Stacie Kroll Paul Pousson, ARM, DRM
The current insurance market is significantly impacting higher education institutions, with many experiencing increased premiums, reduced coverage options and stricter underwriting criteria. While some institutions may have seen stabilization in their cost of risk due to favorable claims history and strong risk management practices, the overall trend remains firm. This trend has led to financial challenges as rising insurance costs strain budgets, potentially diverting resources from academic programs, research activities and student services.
Additionally, the reduced coverage options and stricter underwriting guidelines are leaving higher education institutions more vulnerable to various risks, such as property damage, liability claims and cybersecurity incidents. Institutions may need to reassess their risk management strategies and invest in additional risk mitigation measures to compensate for the reduced coverage. Overall, the higher education insurance market is placing additional financial and risk management pressures on institutions, necessitating a strategic approach to navigate these challenges effectively.
Read the Higher Education Market Update for more insights, as well as ways to enhance your risk profile.
