WHEN THE NONPROFIT

While nobody wants to report a loss, there are several insurers that are not bothered if they don’t report a profit. They serve the nonprofit market and are themselves nonprofit organizations.

One of the nonprofit insurers in the market is the Alliance of Nonprofits for Insurance, Risk Retention Group (ANI-RRG), a Vermont-domiciled risk retention group. ANI-RRG is currently writing coverage for 501(c)(3) nonprofits in Colorado, Connecticut, Delaware, District of Columbia, Iowa, Kansas, Maryland, Michigan, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia and Washington.

ANI-RRG and the Nonprofit Insurance Alliance of California are part of a group that also includes the National Alliance of Nonprofits for Insurance, a captive reinsurer, and Alliance Member Services, a management company. They are themselves tax-exempt organizations.

No surprises
“Having written 501 (c) (3) nonprofits exclusively since 1989, we don’t see much that surprises us,” says Pamela Davis, founder, president and chief executive officer.

But her organization’s approach to underwriting might surprise for-profit insurers. Her underwriters rarely see an account they won’t price or renew. “When we write an account, it is generally with the expectation that we will be able to provide them with the variety of coverages we offer. It is our policy to underwrite and price appropriately rather than to exclude the tough coverages when the insured has the exposure,” she said.

According to Davis, the approach has resulted in a renewal rate in excess of 90 percent and a roster of satisfied customers.

“We are also accountable to the public in the same way that our members are,” Davis commented. “Our members value stability in pricing and have an expectation that they will not be non-renewed because of a single claim. Instead of focusing on ‘what the market will bear,’ we focus on what works best for our members and their brokers. We value the confidence our member-insureds place in us because we are, like them, a part of the nonprofit sector.”

For more information on the company, visit www.ani-rrg.org.