Emerging risks in higher education: Why universities need brokers now

Universities are facing increasing pressures.

According to The Guardian: “Approximately 75% of universities in England are expected to be in financial deficit for the 2025-26 academic year, with an estimated £3.4 billion decrease in income.”

The University of Edinburgh recently announced it was one of the universities facing financial strain.

According to the BBC: “Around 350 staff have taken voluntary redundancy as the sector wrestles with a financial crisis, with more jobs being potentially cut.”

With universities in financially vulnerable positions, Phil Webster (pictured), executive director of education at Gallagher believes it is increasingly crucial for them to protect themselves from emerging risks. “Risk planning is vital… because of the financial climate, you see universities that are running voluntary severance programs,” he said. “I don't want to generalise too much, but typically, it tends to be older employees that are taking advantage of those severance programs and that then gives you a different profile of workforce, which brings with it different kinds of risk issues, both positive and negative. We're seeing a lot of change management within universities and that needs support too.”

Emerging risks surrounding regulation

Speaking on the emerging regulatory risks universities face, Webster mentioned the freedom of speech fine which was imposed by the OFS on the University of Sussex. In March 2025, the University of Sussex was fined a record £585,000 by the Office for Students (OfS) for failing to uphold freedom of speech and academic freedom. The fine stemmed from the university's Trans and Non-Binary Equality Policy Statement, which the OfS determined had a "chilling effect" on lawful expression, particularly concerning gender-critical views.

“From a financial perspective, that's a fairly significant amount of money plus all of the time and effort and legal costs and reputational impact that's had on the university,” Webster said. “I think it has sent out some shortwaves across the sector.”

Discussing coverage for these scenarios, Webster said: “Look at potential policy wording extensions, making sure those apply in terms of freedom of speech. You can buy a relatively standard PI policy but that probably wouldn't give the extensions around OfS awards and investigation costs that you would see within a more bespoke policy.”

Separately, according to reports from The Tab, it was only earlier this month that protests surrounding the conflict in Gaza were taking place across at least eight different UK universities. This creates risks around security on campus. “There’s been an increase in on-site protests,” Webster said. “It’s getting the balance between allowing a rightful protest but then also providing for a safe and secure working environment for staff and a safe and secure learning environment for their students as well.

“Good risk assessment processes are vital. Get senior management's approval and support for policies and procedures. Make sure that those policies and procedures are implemented equitably and fairly and consistently… that's critical from a risk perspective.”

Additional university risks to consider

Here are some additional university-related risks that brokers and risk managers should consider:

1. Property and asset risks

• Campus buildings and facilities – Risk of damage due to fire, flooding, storms, or vandalism.
• Specialist equipment – High-value research and laboratory equipment often requires bespoke cover.
• Heritage assets – Historic buildings or collections (e.g. libraries, archives, art) may need specific insurance.

2. Cyber and data security

• Data breaches – Universities hold large volumes of personal and financial data.
• Cyberattacks – Institutions are frequent targets of ransomware and phishing attacks.
• Research data protection – Securing sensitive or proprietary research data.

3. Liability risks

• Public liability – Injuries to visitors or members of the public on campus.
• Employer’s liability – Injuries to staff, including exposure to hazardous materials or stress claims.
• Professional indemnity – Errors in educational delivery, such as incorrect exam marking or admissions decisions.

4. Student-related risks

• Student welfare and mental health – Universities have a duty of care, and neglect can lead to liability claims.
• International students – Visa and compliance issues, as well as differing legal expectations.
• Accommodation risks – Managing university-owned housing involves liability, maintenance, and fire safety issues.

5. Research and innovation risks

• Collaborative research – IP disputes, contractual liability, and funding compliance.
• Clinical trials – High-risk activities requiring tailored insurance.
• Spinout companies – Risk transfer and governance of university commercial ventures.

6. Travel and fieldwork

• Overseas travel – Staff and student travel (e.g., for conferences, study abroad, or fieldwork) involves political, medical, and repatriation risks.
• Remote or hazardous locations – Heightened risks requiring specialist cover.

7. Governance and regulatory compliance

• Health and Safety – Compliance with UK legislation (e.g. COSHH, RIDDOR).
• GDPR compliance – For handling personal and sensitive data.
• Financial regulations – Especially relevant for publicly funded universities.

8. Reputation and crisis management

• Reputational damage – From scandals, protests, or academic misconduct.
• Media liability – Issues around defamation, especially in academic publications or student media.
• Protests and activism – Risks associated with campus demonstrations and reputational fallout.

9. Environmental and sustainability risks

• Climate-related events – Flood risk, especially in aging or low-lying campuses.
• Carbon footprint and ESG – Increasing scrutiny around environmental, social, and governance performance.

10. Business interruption

• Pandemics or strikes – Disruption to teaching and operations.
• Utility failures – Power outages or heating system failures impacting learning and research.

The role of brokers

Webster believes brokers have a duty to the university when it comes to the unpredictable. “Firstly, make sure that the insurance program is appropriate and up to date,” he said. “We have to accept the risk profile of universities have changed massively post pandemic.”

“Do you need buildings to educate students? Probably not.. What's more important is your IT systems and your infrastructure - that could have more of a vital role to play.”

Webster also emphasised the need for brokers to ensure a breadth of technical support: “I think that's vital from a broker's point of view - making sure that you've got technical support and not just on traditional property claims, but on things like freedom of speech claims.

“It’s vital that we've got consultancy resources that we can draw on and make that available to our clients to make sure that they're getting the best possible advice so they can make informed decisions.”