Now that we're more than halfway through 2022, it's a good time to assess this year's trends — which show some relief from previous years.

Author: Amy Kansay


Brokers have seen unprecedented changes in the past few years. Fortunately, most markets are improving. Here's a quick look at where things stand right now.

Property and casualty increases are lowering

From a nonprofit property and casualty (P&C) insurance perspective, the Package and Umbrella markets are seeing lower increases than in the past three years, and carriers are willing to write more new business nonprofits accounts this year than years past. This change gives us brokers a great opportunity to leverage our vast portfolio of committed nonprofit specialist carriers.

Package policies and shifting loyalty

Package policies with incumbent carriers are experiencing increases of 10-15% with greatest sensitivity to experience (historical loss ratios). As we submit these nonprofit clients for alternate quotes, the alternate carriers are offering smaller increases than the incumbent carriers. This trend is a fascinating dilemma that challenges loyalty and the concept of stability and "building a bank" with a consistent carrier over time.

Since our clients have been experiencing large increase and limit reductions over the past few years, as brokers we have presented competitive alternative renewal quotes and opportunities — and for the most part, clients have been more willing now to switch carriers.

Excess liability is flattening

Excess liability carriers are starting to level off and have been offering renewal quotes at flat to very little increase, which is reassuring after recurring years of double-digit increases and reduced limits. Caution: some of these excess liability players have not been willing to offer any Abuse, Professional Liability or sit excess of Auto coverages; but in most major cities (like many of our clients based in Manhattan), our clients purchase higher liability limits to fulfill property owner requirement, and the specialty coverages are not required.

Cyber is increasing

Nonprofits — along with every other industry — are experiencing double- and triple-digit increases on cyber renewal policies. In addition to discussing the premium increases with our clients, we first have to help demonstrate the security controls and measures that must be in place for carriers to offer terms and conditions. Nonprofit clients tend to focus on their mission and not heavily on cyber security controls (including multi-factor authentication). In some cases, if a nonprofit enterprise doesn't have the proper controls in place, it won't receive a quote.

Partnering for success

Nonprofits need resourceful partners like Gallagher's Nonprofit Insurance and Consulting practice to help them navigate this prolonged challenging insurance market. Consistent communication and collaboration are key to ultimately penning that story of a nonprofit's success and appealing to all interested carriers at the renewal time. Part of that narrative is demonstrating the impact of a claim — how things are now different in terms of managing that experience and exposure. We can never do enough risk management and training, empowering all stakeholders of the importance of duty of care and the public's higher expectation of nonprofits.

Author Information


The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer legal advice or client-specific risk management advice. Any description of insurance coverages is not meant to interpret specific coverages that your company may already have in place or that may be generally available. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis.

Insurance brokerage and related services to be provided by Arthur J. Gallagher Risk Management Services, Inc. (License No. 0D69293) and/or its affiliate Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. (License No. 0726293).