State of the Insurance Market Report

2024 Initial Outlook:
Nonprofit & Human Services Insurance

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Market Updates

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.

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%

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The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.