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After years managing eight e-commerce brands, I’ve seen one thing clearly: AI is rewriting how customer service works. I wrote about it this week for EO. How the right tools can turn every customer moment into leverage, not labor. If you’re serious about scaling smarter, this is where it starts. Read the full piece.

— Lucas Robinson, Founder & CEO at BudgetMailboxes.com

🎯 This Week’s Strategy:

• Insurance Pooling & Risk Sharing Strategy

🤝 Boardroom Brief:

• California Acts to Stabilize Wildfire Insurance Market
  

Strategy

🎯 Insurance Pooling & Risk Sharing Strategy

In property management, insurance costs can significantly impact profitability especially as premiums continue to rise across commercial, multifamily, and community association portfolios. One powerful solution gaining traction is Insurance Pooling & Risk Sharing.

This strategy enables property managers, owners, and associations to combine their insurance coverage into a shared pool, distributing risk more efficiently and potentially lowering overall premiums. By collaborating rather than operating independently, participants can enhance financial resilience and access better coverage terms than they could secure alone.

How Property Managers Can Implement an Insurance Pooling & Risk Sharing Strategy

1. Understand the Concept & Its Benefits

Insurance pooling works by grouping multiple properties, associations, or ownership entities into a single risk-sharing program. The larger the pool, the greater the ability to negotiate favorable rates, reduce volatility, and stabilize premiums over time.

Action Steps:
✅ Research insurance pool models relevant to your property type (HOA, commercial, or residential portfolios).

✅ Consult an insurance broker familiar with pooled programs for real estate groups.

✅ Evaluate potential savings and coverage improvements compared to your current plan.

2. Form or Join a Cooperative Risk Group

Instead of managing risk alone, property managers can join or form a cooperative group with other property owners or management firms. This shared approach spreads risk across a wider base, improving bargaining power with insurers.

Action Steps:
✅ Connect with local property management associations or consortiums that facilitate group insurance programs.

✅ If none exist, initiate conversations with neighboring property owners about forming a cooperative pool.

✅ Draft participation terms, including claim contribution rules and exit conditions, to ensure clarity and fairness.

3. Work with Specialized Brokers & Underwriters

Not all insurance providers offer pooled programs - and expertise matters. Collaborating with a broker who specializes in group property risk management ensures you get access to tailored coverage options and transparent terms.

Action Steps:
✅ Identify brokers experienced in risk pooling for real estate and HOAs.

✅ Request comparative quotes for individual vs. pooled coverage models.

✅ Review coverage limits, deductibles, and exclusions to ensure risk is balanced across participants.

4. Develop a Risk Mitigation Framework

Pooling is only as strong as the risk profile of its members. Consistent risk management practices from safety protocols to maintenance schedules keep claims low and premiums stable for everyone involved.

Action Steps:
✅ Establish standardized maintenance and inspection schedules across properties in the pool.

✅ Create shared safety guidelines for fire prevention, security, and storm preparedness.

✅ Use shared data to identify high-claim trends and address them proactively.

5. Monitor, Review, and Optimize Annually

A successful pool isn’t static. Property managers should regularly evaluate performance metrics such as claim frequency, total loss ratios, and annual premium trends. Adjust participation or negotiate terms based on performance data.

Action Steps:
✅ Conduct an annual pool review with all participating members and the insurance provider.

✅ Track shared claim trends to identify preventable risks.

✅ Adjust contribution ratios or risk exposure as property portfolios evolve.

Why It Works

Insurance pooling transforms an uncontrollable cost into a strategic financial tool. Property managers gain stability, predictability, and leverage in negotiations while fostering collaboration among peers. In an environment of rising premiums and unpredictable weather-related losses, this shared-risk model can make the difference between reactive cost-cutting and proactive financial planning.

Home insurance rates up by 76% in some states

Over the last 6 years, home insurance rates have increased by up to 76% in some states. Between inflation, costlier repairs, and extreme weather, premiums are climbing fast – but that doesn’t mean you have to overpay. Many homeowners are saving hundreds a year by switching providers. Check out Money’s home insurance tool to compare companies and see if you can save.

Compare coverage

Boardroom Brief

California Acts to Stabilize Wildfire Insurance Market

California has taken a major step toward stabilizing its wildfire-stricken insurance market with new legislation signed by Governor Gavin Newsom on October 9, 2025. The law strengthens the state’s FAIR Plan, an insurance pool for homeowners who can’t secure private coverage due to wildfire risk. Following this year’s devastating Los Angeles fires which destroyed more than 17,000 structures and left the FAIR Plan facing $4 billion in losses, the bill authorizes state-backed loans and bonds, allowing claims to be paid over multiple years instead of within 30 days. For property managers and HOA leaders, this move could help reduce future premium spikes and preserve coverage availability in high-risk areas. While the measure doesn’t fully resolve California’s broader insurance challenges, it signals stronger state intervention and greater long-term resilience for markets increasingly exposed to climate-driven disasters.

Game

🎉 Fun Finale: Play & Poll

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