protecting your investment joe creney laura dickerson
TRANSCRIPT
PROTECTING YOUR INVESTMENT
Joe CreneyLaura Dickerson
Agenda
• The expanding role of Insurance and Student Benefits in today’s Higher Education environment
• Review recent research regarding the types of risks parents and students are concerned about
• Understand how medical issues can impact college completion
• Provide examples of Insurance and Student Benefits programs and how they help schools and their families
The expanding role of Insurance
Insurance?
You need to talk to our Risk Management
office…
In today’s challenging environment, the insurance conversation is increasingly moving outside of the Risk Management Office.
Insurance and other Student Benefit programs can help you:
• Attract new students
• Retain your existing students
• Provide a better experience for you and your families
Failing to graduate is costly to families and institutions
Parent concerns
Reputation/social media issues
Mental health related issuesuch as anxiety or depression
Poor eating habits
Theft of personal propertysuch as laptop or bicycle
Relationships with other students
Acadmic preparedness/poor study skills
Hospitalization or accident
Lack of self-discipline
Serious illness
Identity theft
Homesickness
22%
27%
34%
51%
38%
40%
28%
41%
21%
29%
32%
Q: For each of the following
factors, please rank on a scale
of 1-5 how concerned you are
(or were when your child first
began college or first lived away
from home) that the factor will
negatively affect your child’s
ability to be successful in
college. 1= not at all concerned
and 5=extremely concerned.
N=620
A recent survey of parents confirmed that parents worry about a lot of things when sending their children away to college!
% that responded ‘Concerned’ or ‘Extremely Concerned’
For students, illness is the primary risk-related concern
In a 2011 study, students overwhelmingly recognized that illness is a real risk to being able to complete college
4. Pleskac, T.J., Fandre, J.*, Merritt, S., Schmitt, N., & Oswald, F. (2011). A detection model of college withdrawal. Organizational Behavior & Human Decision Processes, 115, 85-98
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Understanding How Medical Issues Can Impact College Completion
How often do medical withdrawals occur?
1% or less 1 - 2% 2% - 2.9% or more 3% or more
59.1%
15.3%6.6%
2.9%
Please estimate what percentage of your student population complete a medical withdrawal each year?
A recent survey of bursars and risk managers estimated that about 1% of students are forced to officially withdrawal each year for medical reasons.
Total responses = 138
Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015
Medical issues have a greater impact beyond reported withdrawals
Using data from the American College Health Association National College Health Assessment, it is likely that many more students are impacted by medical issues that may indirectly lead to them being unable to complete classes
What happens when a student has to withdraw?
46%No refund after 5 weeks with no ap-peals
14%Refund less than 50% after 5 weeks
20%Automatic re-fund of more than 50% af-ter 5 weeks
20%All other, mixed bag of policies
• Withdrawal refund policies are highly variable by school. While some policies stipulate pro-rated refunds, others offer set amounts, and some offer no refund at all
• Most schools refund less than 50% of tuition and fees after the 5th week of classes• Almost half provide no refund after
the 5th week, with no formal appeals process
• If a school does provide a refund, it is generally limited to Tuition and Fees. Families often have no way to recoup the cost of lost room and board, books, travel, etc. that make up the full cost of attendance
Based on school survey conducted by the College Parents of America
Disclosing the refund policy
Most school administrators agree that it is a good idea to make their families aware of the school’s refund policies
Strongly Agree
Agree
Disagree
Strongly Disagree
26%
58%
17%
0%
Do you agree that it is prudent to provide notice to each student
of the refund policy?
Strongly Agree
Agree
Disagree
Strongly Disagree
18%
44%
33%
5%
Do you agree that Colleges and Universities are required to provide individual notice of
their refund policies to each student?
83% agree it is prudent to provide notice to each student
62% agree it is a requirement to provide notice to each student
Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015
Despite the best intentions, families still don’t understand the risk
30% Yes
21% No
49% Not Sure
Less than one-third of parents recalled being told about the school’s refund policy
Q: Was the medical withdrawal refund policy disclosed to you by the school?
Q: How would your school handle a medical withdrawal?
63%I have no idea
26% Refund some tuition
11%Other
Almost two-thirds of parents have no idea how their school would handle a medical withdrawal
Our research indicates most families don’t recall being told about the school’s refund policy and have little idea how their school would handle a medical withdrawal
Sallie Mae Insurance Services, June 2013 Report on Parent Survey of Risk and Concerns.
Refund appeals create angst and can be a burden for the institution
Strongly Agree
Agree Disagree Strongly Disagree
15%
42%36%
6%
Students/parents who have not been provided notice of the institution’s refund policy become upset when
learning of the policy during a medi-cal withdrawal.
Strongly Agree
Agree Disagree Strongly Disagree
9%
36% 38%
17%
The refund appeals process is a burden for the
institution to manage.
Most schools surveyed feel that it is a bad experience for families to learn about the refund policy after the medical issue occurs. Almost half of school administrators surveyed felt that the appeals process was a burden for the institution
Source: Survey of 138 bursars and risk managers completed by Next Generation Insurance in March 2015
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Examples of Insurance and Student Benefit Programs
Tuition Insurance reimburses tuition and other related expenses if a student is unable to complete classes due to a medical reason. Typical plans cover:
Reimbursement for medical withdrawals due to accident, sickness, or mental health condition
Reimbursement for withdrawals due to death of student or tuition payer
Generally costs around $200 to $500 per year depending on the level of coverage
Providers include GradGuard and A.W.G. Dewar
Tuition Insurance
The benefits of offering Tuition Insurance to your families includes:
Enables families to protect their education investment
Provides greater clarity to the school’s refund policy
Reduces administrative burden of managing a refund appeals process
Renters Insurance
Personal Property Protection
Replaces stolen or damaged personal property, including laptops, cell phones, bikes and more
Covers property when not on campus including travelling abroad, spring break, or back at home)
Full Replacement Cost with low deductibles (e.g., $100.00 deductible)
Personal Liability Protection
Protects student financially for unintentional property damage or
bodily injury to others
Shifts financial burden of uncollected receivables for damage to residence halls from the school to
the insurance carrier
+
Solving a Need for Families“If your child’s laptop is stolen, we will replace it for $100 and the coverage only costs $140
for the school year!”
Solving a Need for the School“If a student causes a sprinkler head to go off,
the insurance will cover the damage so you don’t have to go after the parents!”
Sample Cost
On campus student living in residence hall ~$140.00 per year
Off campus student living in an apartment ~$225.00 per year
Many companies offer renters insurance for college students. The most comprehensive plans will typically include two primary types of coverage:
Consider an insurance and student benefits program for your school
Room Safe~$140
Linens~$159
Microfridge~$189
Laundry Service~$199
Bike Share Programs
Insurance companies can help make schools aware of the different risks families face and the options to help them protect their education investment. These programs can provide:
Is it time for your school to move beyond the traditional student services and offer an enhanced Student Benefits program that provides real financial value?
• Valuable protections for your students• Peace of mind for your parents• Reduced administrative burden for your school
Tuition Insurance
Student Benefit Bundles
Renters Insurance
~$200 per year
SAVE THE DATE!FASFAA 2016
May 24-27 2016Hyatt Regency, Coconut Point Resort & Spa Bonita Springs, Fl.