Global Hawk Insurance Company Risk Retention Group (Global Hawk) President and Treasurer Jasbir S. Thandi has been indicted in the United States District Court for the Northern District of California. Global Hawk Vice President and Secretary Sandeep Sahota and Jaspreet Padda—an investment advisor for Global Hawk—were also indicted. The indictment was filed on November 16, 2023, and unsealed on December …
Transitions and Moving Past COVID: VCIA President Kevin Mead on the 2023 Conference
The 2023 VCIA Conference will be held from August 7th to 10th in Burlington, Vermont. Vermont is the largest domestic captive domicile with over six hundred domiciled captives. Vermont is also the leading risk retention group domicile with 80 domiciled risk retention groups that reported gross written premium of $2,928.5 million in 2022—60 percent of all risk retention group premium. …
Florida Bill Endangers Commercial Auto Coverage for RRG Members
Florida Bill 516 (the Bill) was unanimously approved by the Committee on Banking and Insurance (Committee) of the Florida Senate at hearing held on March 22, 2023. The Bill would require risk retention groups writing commercial auto liability in Florida to carry a Financial Strength Rating of “A” or higher and be of a Financial Size Category (FSC) of VIII …
Strong Growth Takes RRG Premium Past $4 Billion
Risk retention group premium increased by a strong 13.5% in 2021 to $4,352.6 million, an increase of $516.8 million over the $3,835.8 million reported in 2020. It was the strongest year for RRG premium growth in dollar terms since 2003. Premium growth was dispersed across a range of business sectors. The largest growth was at the recently reactivated Healthcare RRG …
Successful NRRA Conference Shows Increased Interest in RRGs
Conference Recap The 2021 National Risk Retention Association (NRRA) Conference was held from November 2 to 4 at the Sofitel Hotel in Chicago, Illinois. Although attendance was down from pre-COVID levels, there were indications that interest in the risk retention group vehicle is increasing. Even with the decline in attendees, NRRA Executive Director Joe Deems was pleased with the conference. …
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 …
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 …
Management and Regulators Contribute to Spirit Commercial RRG’s Mounting Troubles
Editor’s Note: This article is a reprint of an investigative report that ran in the February 2019 issue of the Risk Retention Reporter. In April 2021, liquidation proceedings involving Spirit Commercial Auto Risk Retention Group were appealed to the Nevada Court. This article was cited in the Writ of Mandamus filed by Nevada Commissioner of Insurance Barbara Richardson. Given that, …
Risk Retention Groups and Purchasing Groups: A Guide
Besieged by pleas from business people and municipalities across the United States who were unable to obtain or afford liability insurance during the mid-1980’s, Congress responded by enacting amendments to the 1981 Product Liability Risk Retention Act. The new legislation, known as the Federal Liability Risk Retention Act of 1986 (LRRA), created two vehicles by which insurance buyers could more …
Can RRGs Meet the Need for Commercial Auto Coverage?
The Transportation sector continues to drive new risk retention group formations. Of the eight new risk retention group formations thus far in 2020, five are Transportation risk retention groups. This suggests there is a need for commercial auto liability coverage, much as there was a need for medical professional lines of coverage in the years following the passage of 1986 Liability …