The rankings of captive managers by risk retention group premium largely held steady in 2020. This stability comes after a period of significant upheaval where long-term players in the risk retention group space such as USA Risk Group and JLT Towner fell from prominence or were acquired. It seemed that further shake-ups were in the cards when it was announced …
Breaking Down RRG State Registrations
Risk Retention Reporter Managing Editor Christopher Diemel participated on a panel at the 2021 VCIA Virtual Conference entitled “Are RRGs a Mature Industry?” Other participants on the panel included Vermont Assistant Director of Captive Insurance Christine Brown, MCIC Vermont (A Reciprocal RRG) Chief Risk Officer Chris Heckman, and Recreation RRG Secretary and Risk Management Officer Tim Herr. While discussing the …
Spirit Commercial RRG’s Total Unpaid Loss and LAE at $199 Million
The tenth status report for the liquidation of Spirit Commercial Auto Risk Retention Group (Spirit) was issued by Special Deputy Receiver (SDR) Cantilo & Bennett, L.L.P. on July 7, 2021. The report includes the first estimate of unpaid liabilities at Spirit. Actuarial firm Oliver Wyman set the total unpaid loss and loss adjustment expenses for Spirit at $198.7 million. That …
2020 Risk Retention Group Premium Growth Driven by Fewer Domiciles
The risk retention group industry saw another strong year of premium growth in 2020, with premium increasing to $3838.3* million from $3581.5 in 2019, an increase of 7.2%. Growth in 2020 occurred in a lower number of domiciles—nine—than in 2019, when 13 domiciles reported increases in premium. 2020 premium growth was driven in part by newly formed or reactivated risk …
CICA and NRRA Announce Fall Conferences
The Captive Insurance Companies Association (CICA) and the National Risk Retention Association (NRRA) have announced conferences for fall 2021. The two conferences will be among the first captive conferences with a national attendance to held in-person since the coronavirus pandemic abruptly halted most events in March 2020. CICA will be holding its Fall Forum from October 10 to 13, 2021, …
More Risk Retention Groups Carrying Ratings in 2021
More risk retention groups are carrying ratings from A.M. Best or Demotech, Inc. as of July 2021 than were carrying ratings in July 2020. The number of risk retention groups carrying an A.M. Best rating held steady at 41, while the number of risk retention group carrying a Demotech rating increased from 24 to 29. Two risk retention groups—Attorneys’ Liability …
Hard Market Drives Strong RRG Premium Growth in 2020
Risk retention groups reported strong premium growth of 7.1% in 2020 that took collective RRG premium to $3827.8 million. 2020 marks the tenth consecutive year of premium growth for the risk retention group industry and is one of the strongest years of premium growth since 2006, falling just behind the premium growth of 8.3% reported in 2019. Overall, 137 risk …
NFP Captives Unit Sees Growth in the Hardening Market
A new entrant in the alternative risk space, insurance broker NFP Corp., sees lots of potential for growth in captives and risk retention groups as segments of the market harden, according to Jonathan McKenzie, vice president of NFP’s Risk & Insurance Strategy Collective (RISC). Parent company NFP sees alternative risk “as a component of their continued growth in 2021 and …
Are RRGs Due for a Rebound?
By Jon Harkavy, Of Counsel, Risk Services Attempting to speculate as to current trends and future of RRGs in 2021 is no easy task. The usual market barometers involved; premium volume and the number of RRGs formed, have been skewed by the pandemic and are not particularly useful for any predicative market analysis. RRG premium continued to grow in 2020, …
Vermont Captive Insurance at 40: A Look Back at the History and the People
Vermont is celebrating its 40th anniversary as a captive domicile this year. The Risk Retention Reporter spoke with captive managers and regulators to trace the history of Vermont as a captive domicile, from the years leading up to the passage of Special Insurer Act of 1981 to the emergence of risk retention groups in 1987 through to the work being …