IMA – Markets in Focus: Education, Q4 2025

This report focuses on the education sector, specifically K-12 and higher education, analyzing insurance pricing, market updates, and challenges facing educational institutions in Q4 2025.

Educational institutions face complex challenges including shrinking budgets, declining enrollment, staffing shortages, and rising compensation demands. Operational costs are increasing faster than inflation, while tuition revenue is variable, causing financial strain. Private K-12 schools struggle with operating income due to mid-year student transfers and business income classification challenges. Higher education institutions face budget cuts due to enrollment shortfalls, especially among international students. Enrollment declines are significant risks affected by demographic shifts. Private school enrollment has rebounded somewhat, but tracking remains difficult; public schools are more affected by enrollment declines. Staffing shortages among teachers and staff remain a continuing concern.