AM Best Affirms Financial Strength Rating of A (Excellent) of Nonprofits Insurance Alliance (NIA) for 2020

- Leading Insurer Exclusively Serving Nonprofits Receives Balance Sheet Assessment of Strongest as Measured by Best's Capital Adequacy Ratio (BCAR).

- AM Best assigned a rating of Significant for its assessment of NIA’s Level of Innovation.

SANTA CRUZ, Calif.--()--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Issuer Credit Rating (ICP) of “a+” of the insurance entities of Nonprofits Insurance Alliance (NIA). The ratings reflect NIA’s balance sheet strength, which AM Best categorizes as strongest, as well as NIA’s adequate operating performance, favorable business profile, appropriate enterprise risk management, and stable outlook. In addition, AM Best assigned a rating of Significant for its assessment of NIA’s innovation summary.

NIA’s group brand includes Nonprofits Insurance Alliance of California (NIAC), based in Santa Cruz, CA; Alliance of Nonprofits for Insurance, Risk Retention Group (ANI), domiciled in Vermont; and National Alliance of Nonprofits for Insurance (NANI), also domiciled in Vermont. All NIA organizations are administrated by Alliance Member Services and serve nonprofit organizations through specialized insurance coverages and exceptional risk management and loss control resources. All insurers in the group are 501(c)(3) nonprofits.

Starting in 2020, AM Best is evaluating a carrier’s innovation level based on two elements: (1) innovation inputs, the components of a company’s innovation process; and (2) innovation outputs, the impact of the carrier’s innovation efforts. The resulting assessment is the sum of both elements. NIA received an assessment of Significant (higher than Minimal and Moderate), well above the lower end that AM Best expected most carriers would score (Scoring and Assessing Innovation, AM Best, March 5, 2020).

In 2020, NIA announced several pace-setting insurance coverages for nonprofits including:

  • Coverage for damage to property rented or occupied by the nonprofit for which the nonprofit is legally liable;
  • Blanket Additional Insured endorsement for Improper Sexual Conduct and Physical Abuse (ISCPA) policy;
  • Businessowners Enhancement Endorsement amendment for NIAC members to reimburse the nonprofit for the loss of business income, extra expense, relocation costs, and evacuation costs for up to $30,000 for any one policy year for incidences of Workplace Violence, Crisis Incident or an Outside Aggressor;
  • Auto coverage reimbursement to NIAC members for payments made to their employees for auto physical damage caused on personal vehicles during work-related activities
  • Coverage to protect nonprofit organizations from liability claims arising from communicable disease.

For another consecutive year, AM Best’s rating affirms NIA’s financial strength and operating performance as well as its focus on innovation. Since the time of its founding in 1989, NIA has been a groundbreaking social enterprise and a tax-exempt insurer, providing tailored insurance policies and special risk management services to a niche market.

With 21,000+ members and a 30+ year history of insuring only 501(c)(3) organizations, NIA has developed an unparalleled track record of serving the sector. The organization provides insurance in 32 states and the District of Columbia. Through expertise in underwriting nonprofits, NIA provides member-insureds with stably-priced liability and property insurance in a hardening market where 501(c)(3) nonprofit organizations are experiencing an affordability and availability crisis. Through its long-term commitment to its members and the nonprofit sector, NIA is truly differentiated from its competitors.

About Nonprofits Insurance Alliance

Nonprofits Insurance Alliance (NIA) is the nation’s leading property and casualty insurer exclusively serving nonprofit organizations. Founded in 1989 in Santa Cruz, CA, NIA is a social enterprise developing the long-term sustainability of the nonprofit sector. NIA has one of the best customer retention rates in the industry. NIA members enjoy stably-priced insurance, innovative insurance coverages, dividends, and specialized risk management and member services. The NIA group brand is comprised of Alliance Member Services (AMS) and three AM Best A VIII (Excellent) rated insurers: Nonprofits Insurance Alliance of California (NIAC), Alliance of Nonprofits for Insurance, RRG (ANI), and National Alliance of Nonprofits for Insurance (NANI). All organizations under the NIA brand are 501(c)(3) nonprofits. Learn more about Nonprofits Insurance Alliance at insurancefornonprofits.org/about.

Contacts

Ren Agarwal
831.621.6041
ragarwal@insurancefornonprofits.org

Contacts

Ren Agarwal
831.621.6041
ragarwal@insurancefornonprofits.org