Catching Up on Purchasing Groups with Dan O’Leary

Purchasing groups were authorized by Congress along with risk retention groups under the 1986 Liability Risk Retention Act. Unlike risk retention groups, purchasing groups are not insurance companies. Instead, the purchasing group vehicle allows members with a similar risk profile to purchase liability coverage on a group basis. The purchasing group also makes it easier for its members to purchase …

Breakdown of RRGs and PGs by BusinessSector

Purchasing groups differ significantly from risk retention groups in breakdown of business sectors in which they are active. Not only are purchasing groups active in a wider range of business sectors than risk retention groups, there is also no one sector that represents a dominant share of the purchasing group marketplace. Healthcare is the largest business sector for purchasing groups …

VCIA President Richard Smith to Step Down

Long-time VCIA President Richard Smith will be stepping down at the end of January 2022. Smith has served as the President of VCIA since 2009. VCIA, like most other organizations, has experiences significant disruption from the coronavirus pandemic. “It has been a great privilege to lead this incredible organization for the past twelve years,” stated Smith. “I am so grateful …

Positive Ratings Actions for Several RRGs

A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) for Community Hospital Alternative for Risk Transfer (A Reciprocal Risk Retention Group) (CHART RRG). The outlook for the ratings was revised to stable from positive. “The ratings reflect CHART RRG’s balance …

Demotech Second Quarter Analysis of RRGs Shows Strong Premium Growth

Demotech, Inc. has released its publication Analysis of Risk Retention Groups—Second Quarter 2021. The Demotech report finds that risk retention groups continue to report premium growth while exhibiting continued financial stability. From second quarter 2020 to second quarter 2021, risk retention groups collectively reported growth in cash and invested assets of 14.7%, while surplus increased by 14.3% over the same …

New Maple Tech Zero-20-20 Program Focuses on Transportation RRGs

Maple Technologies (Maple Tech), a provider of cloud-based administration software for property and casualty (P&C) insurers, announced a new program geared towards smaller insurers including risk retention groups and captives. Maple Tech’s core software is the Aspire system and the Zero-20-20 program will waive the implementation fees for Aspire for those carriers with gross written premiums of less than $20 …