By Thomas M. Angelucci
STRONGER TOGETHER
When colleges and universities consider joining a risk pool, the discussion often begins with a straightforward question: “Will we save money?” It should.
Insurance premiums represent a significant investment, and every institution has an obligation to be a good steward of its resources and reputation. Cost will always be an important part of the conversation. But after leading a higher education insurance consortium, I’ve learned that it shouldn’t be the only conversation.
The longer I’ve worked with our member institutions, brokers, and carrier partners, the more convinced I’ve become that the greatest value of a successful risk pool isn’t found on the premium invoice. It’s found in relationships, shared experiences, and credibility that develop over time.
“The greatest value of a successful risk pool isn’t found on the premium invoice.”
Evaluating Collaborative Risk Financing
When I accepted my position, I expected to spend a lot of time helping place insurance, coordinating renewals, and working through the mechanics of a consortium. Those responsibilities remain important. What I didn’t fully appreciate was how much of the work would focus on bringing institutions together to learn from one another and helping the insurance marketplace better understand who our members are.
One of the biggest misconceptions about risk pools is that they somehow solve or cure an institution’s insurance challenges.
However, they do not. Losses may still occur, insurance markets fluctuate, and new risks emerge. Difficult decisions about coverage, funding, and risk tolerance are always present.
What changes is how those challenges are addressed. Instead of facing them alone, institutions have the opportunity to share ideas, discuss claims, compare risk control strategies, and learn from each other’s experiences.
Every institution has knowledgeable professionals managing risk on its campus. When those professionals come together, something changes. Questions raised by one member often identify exposures that others hadn’t considered. A successful risk control initiative at one university becomes a practical solution for another. Claims that might otherwise be viewed as isolated events become opportunities for every member to learn. That shared experience doesn’t make the member institutions identical. It makes every institution better informed.
I experienced that firsthand during meetings with cyber underwriters in London. As we talked about our program, I realized the discussion had moved well beyond insurance limits and pricing. We spent more time talking about what happens when our members meet throughout the year—how they openly discuss emerging risks, exchange practical ideas, challenge each other’s thinking, and share strategies that have worked on their campuses.
The underwriters weren’t simply evaluating 13 institutions purchasing insurance together. They were evaluating a group of institutions that had created a culture of collaboration.
The resilience they saw wasn’t created by the insurance policy alone. It was created by the willingness of our members to learn from one another before losses occurred. I saw another example over a much longer period.
Over several years, our consortium worked intentionally with members, brokers, carriers, and claims professionals to improve our claims management practices. We focused on communication, clearer expectations, and greater consistency. It required commitment from everyone involved because meaningful improvement rarely happens quickly. Because of this, the marketplace eventually noticed.
For example, a carrier that initially declined to offer additional limits of liability gradually changed its position. Over three renewals, that “no” became “maybe,” and eventually they offered double capacity. Their explanation wasn’t based solely on pricing or market conditions. They had observed the work our members had done together and developed greater confidence in the way the consortium was managing risk.
That experience reinforced an important lesson: Successful pools don’t simply ask the marketplace for confidence. They earn it through transparency, disciplined governance, collaboration, and a demonstrated commitment to continuous improvement. Over time, that credibility influences how carriers view the consortium and creates opportunities that may not have existed otherwise.
Earning Trust, Managing Difference
Healthy pools share another characteristic as well: there are very few surprises. That doesn’t mean losses don’t occur. It means members, brokers, and carriers understand one another. Expectations are discussed before difficult situations arise. Communication occurs throughout the year instead of only during renewal season. Strong relationships create fewer misunderstandings and better outcomes when challenges inevitably occur.
Building those relationships isn’t always easy, because every institution is different. Large research universities, regional campuses, medical centers, and specialized institutions each bring unique cultures, priorities, and risk profiles. One of the greatest challenges of leading a consortium is recognizing those differences while maintaining fairness across the membership.
Treating every institution identically is not the same as treating every institution fairly. Successful pools recognize individual differences while maintaining a shared commitment to the long-term success of the group.
That is why I believe participation in a risk pool should not be commoditized; it should be viewed as a long-term strategic relationship rather than an annual purchasing decision. A pool is not always the right answer for every institution, nor should it be. But institutions that choose collaborative risk financing should resist the temptation to evaluate that decision solely through the lens of this year’s premium or renewal terms.
BOTTOM LINE
If your institution is evaluating a pool, ask what it will look like in year five, not just what it costs in year one. The greatest value of a successful pool develops over time. It is reflected in stronger governance, better-informed decision making, improved relationships with brokers and carriers, greater confidence in the marketplace, and a culture where institutions learn from one another instead of facing every challenge alone. Those benefits rarely appear on a premium invoice.
Premium savings may be the first benefit people notice. But in my experience, they are rarely the most enduring one.
