State of the Insurance Market Report
2024 Initial Outlook:
Nonprofit & Human Services Insurance
Rate increases for nonprofits accelerated in the second half of the year, particularly for property insurance. Catastrophe (CAT) events brought over $150 billion in property losses in 2023, which impacted pricing.
Risk Strategies recommends that nonprofits reevaluate property values to ensure insurance policies cover at least 80% of the property value. When nonprofits update their property values, they may qualify for a lower rate increase.
Court activity is back in full swing after the COVID-19 shutdown. Last year, claims increased in the following areas:
- Molestation
- Wrongful termination/employment practices liability
- Professional liability for occupational therapists and other care providers
Carriers are charging nonprofits higher premiums in anticipation of litigation losses. Third-party litigation funding and nuclear verdicts make it impossible to predict total loss costs.
2025 State of the Insurance Market: Initial Outlook and 2024 Wrap-Up
Rate Forecast |
||
| Property - Average Risk: |  |
+5% to +10% |
| Property - Below Average Risk: | |
+10% to +30% |
| Auto: | |
+6% to +11% |
| Casualty - Good Loss Experience: | |
+3% to +6% |
| Casualty - Poor Loss Experience: | |
+15% to +20% |
| Umbrella: | |
+5% to +10% |
| Cyber: | |
Flat to +15% |
| Management Liability: | |
Flat to +15% |
