When choosing an insurance carrier, education clients and their brokers consider pricing a critical element—after all, these costs affect the education experience delivered to students. AFM identifies colleges and universities with strong risk performance factors, and provides them with market-leading broad coverage and engineering services at competitive rates. Better-protected institutions deserve better insurance programmes—this is our core principle.

Consistent annual growth, as depicted by this chart, lets us know that clients think our price, product and service offering is competitive in the market.

However, a program based solely on price doesn't consider all the factors essential for the kind of long-term partnerships that we believe are important to delivering maximum value. Therefore, in addition to providing a competitively priced program, AFM works with education clients to:

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Stabilise pricing by taking a long-term view

Because insurance contracts are negotiated on a one-year basis, they are often subject to the pricing volatility of a short-term horizon. AFM works with education clients to develop a longer-term, sustainably competitive offering, thus stabilizing their risk transfer budget.

Insurance pricing volatility is a frustrating reality. Even when an educational institution's property values and business income remain unchanged, their costs can vary significantly year to year. Although clients may enjoy better pricing in a soft market, a hard market may yield double-digit increases that exceed their budgetary constraints. Because AFM relies less on reinsurance pricing, we can reduce our education clients' exposure to third-party pricing volatility—helping them manage their annual overhead budget.


Reduce cost by improving risk profile

The practical application of creative thinking and engineering solutions can help education clients lower their long-term cost of risk.

Premium cost is directly tied to exposure. AFM works with clients to identify where exposures can be reduced, often resulting in a more competitive offering. For example, AFM worked with a university to improve their risk profile and reduce their exposure to a catastrophic property loss that could interrupt their students' education.

Most buildings in active seismic zones are built to withstand the shaking of earthquakes. While minor shake damage may still occur, the bigger risk is fire. Gas lines can rupture, releasing natural gas, and a catastrophic fire can occur if an ignition source is present.

When a university client located in a seismic zone was informed of this risk by their AFM account engineer, they wanted to minimise such an exposure. The account engineer advised them to install seismic gas shut-off valves (SGSV). Positioned at the point gas enters the building, these valves close when they detect seismic activity, thus eliminating the risk of a gas fire.

In addition to providing the client better protection against fire following an earthquake, installation of the valves enabled the production underwriter to increase their overall earthquake coverage.