The theme of the 2022 NRRA Conference is “Envisioning a Purpose Driven Future.” The Conference will be held from November 1 to November 3, 2022, at the Sofitel Magnificent Mile Hotel in Chicago, Illinois.
This year’s conference comes after one of the strongest years for RRG activity on record. At the end of 2020 there were 215 operational risk retention groups—the lowest since 2005. However, the tide shifted dramatically for the RRG industry in 2021 with 24 new risk retention group formations, making it the best year for new RRG formations since 2007. Formations have fallen off a bit in 2022 but remain strong with ten new formations thus far and more likely by year end.
Risk retention groups also reported the second largest premium increase on record in 2021 with premium increasing by 13.6% to $4,443.3 million, a gain of $519.3 million over the $3,824.0 reported in 2020.
“We started to see the growth a couple of years ago, largely due to hardening market conditions,” said Aon Regional Managing Director—Americas and NRRA Board Chair Nancy Gray. “RRGs have traditionally been very good at responding to changing market conditions, as a result we have seen several entities look to the risk retention group vehicle for certain insurance needs.”
The revitalization of the risk retention group industry makes it an exciting time to attend the NRRA Conference, which is the only conference dedicated solely to RRGs.
This year’s conference looks back at the history of the risk retention group industry to see how RRGs are poised for success in the future. One key component to that success is being a “purpose-driven RRG,” a concept long-championed by NRRA Executive Director Joseph Deems.
That theme is at the heart of NRRA’s new content initiative “NRRA-In-Vision,” which kicked off with a series of webinars that combined a history of the risk retention group industry—as presented by Risk Retention Reporter Managing Editor Chris Diemel—with commentary by leaders at some of the most successful risk retention groups.
The first two episodes, covering the years from 1986 to 2002, and featuring Mental Health RRG President Nicholas Bozzo and OOIDA Chief Operating Officer Rod Nofiziger, are currently available for viewing on the NRRA website riskretention.org. Episodes three and four, covering the period from 2002 to 2018, and featuring MCIC Vermont (A Reciprocal Risk Retention Group) Chief Risk Officer Chris Heckman and HAI Group President and CEO Ed Malaspina, will be up on the website shortly.
“One of the challenges that risk retention groups face is soft market conditions, as insureds are seeking premium savings. When you have the purpose driven RRG, they can weather the soft market. They can ride the peaks and valleys in premium, through the value adds that the RRG provides to insureds,” said Gray. “Those services can include loss control and prevention, along with other services. Additionally, RRGs understand the insureds and their business. RRGs are also not looking at the risk exposure from a traditional market perspective. The RRG is there for stability.”
The NRRA-In-Vision focus on the components of the successful RRG will continue in the educational sessions at the 2022 NRRA Conference with a series of sessions that include “NRRA-In-Vision: 35 Years of the Revolution and the Evolution of RRGs;” “Secrets of the Successful Companies;” “RRGs Outperform Now—But How About Two Years from Now;” and “The Purpose-Driven RRG—The Real Perspective.”
Other topics that will be explored at the NRRA Conference include avoiding “run-away” jury verdicts, a regulators round-table, and proactive strategies for managing capital. In addition to the educational sessions, the NRRA conference remains the premier networking event for the risk retention group industry.
“The NRRA conference is the only event that brings together the RRG industry. The attendees understand the issues facing RRGs and work collaboratively to provide solutions,” said Gray.
For more information, and to register for the conference, visit the NRRA website, riskretention.org.
For more information on risk retention groups, subscribe to the Risk Retention Reporter