Global Hawk Defendants Default,
Liquidator Seeks $66 Million in Damages

Jasbir S. Thandi and Global Century Insurance Brokers, Inc. (GBIC), defendants in the United States District Court for the District of Vermont (Vermont District Court) lawsuit regarding Global Hawk Insurance Company Risk Retention Group (Global Hawk) have defaulted. The Plaintiff, Vermont Department of Financial Regulation (Vermont DFR) Commissioner and Global Hawk Liquidator Kevin J. Gaffney, is now seeking a default …

Vermont DFR Sues Crowe Over
Global Hawk Audit Work

The Vermont Department of Financial Regulation (Vermont DFR) has filed a lawsuit against Crowe, LLP for audit reports it produced for the now insolvent Global Hawk Insurance Company Risk Retention Group (Global Hawk). The complaint includes claims of alleged negligence, negligent misrepresentation, and breach of contract for the years` ranging from 2016 to 2018. The complaint was initially filed by …

RRGs and the Market for Law

By Andrew P. MorrissProfessor, Bush School of Government & Public Service and School of LawTexas A&M University In creating risk retention groups and purchasing groups, Congress created what has become a vibrant “law market” for insurance regulation, providing a model for successful harnessing of competition to improve the legal system. In a forthcoming article in the Journal of Special Jurisdictions, …

2022 VCIA Report: Farewells and a Strong Return

The 2022 VCIA Conference was held from August 8-11, 2022, in Burlington, Vermont. It was the first in-person VCIA conference since 2019. Attendance was strong with 986 professionals attending the conference. In addition, the Vermont captive industry said farewell to two of its longtime leaders. Both Rich Smith—the former VCIA president who stepped down at the beginning of 2022—and the …

UE’s Janice Abraham to Retire in 2023

Janice Abraham, the President and CEO of United Educators Insurance, A Reciprocal Risk Retention Group (UE), will be retiring in the summer of 2023. Abraham has led UE since 1998—making her one the longest serving risk retention group executives. Having formed in 1987— soon after the passage of the Liability Risk Retention Act—United Educators is one the longest operating risk …

Competition Increases: RRG Captive Manager Rankings 2021

RRG captive managers saw increased competition in 2021—with some large accounts moving to new captive managers—and several new captive managers entering the RRG space. This competition follows a strong 2021 for the RRG industry. The risk retention group industry saw the second largest premium increase on record in 2021—behind only 2003—with RRG premium increasing by 13.6% to $4343.2 million. In …

Net Loss for RRGs in First Quarter of 2022 as Per Demotech

Demotech, Inc. has released its report “Analysis of Risk Retention Groups—First Quarter 2022”. The report finds that risk retention groups continue to exhibit financial stability. However, a rare net loss for RRGs was reported in the first quarter of 2022. This net loss stems from weak investment performance in the first quarter of the year. According to the report, for …

David Provost on his Decision to Step Down and What’s Next for Vermont

Vermont Deputy Commissioner, Captive Insurance at the State of Vermont David Provost will be retiring at the end of summer 2022. Provost has led the Vermont captive division since 2008. The Risk Retention Reporter reached out to Provost to discuss his decision to step down, the current captive team in Vermont, and what’s next for Vermont and the captive industry. …

RRG Cession Rate Holds Steady in 2021

The RRG cession rate continued to hold steady in 2021, even as the hard market contributed to the second largest increase in RRG premium on record. Risk retention groups ceded 46.6% percent of premium to reinsurers in 2021, almost identical to the cession rate of 46.4% in 2020. Overall trends in RRG reinsurance have not shifted much recently. The biggest …

Writing D&O Insurance Through a Risk Retention Group Structure

By Gary Osborne, Vice President, Risk Partners D&O insurance rates continued to rise in 2021. Many believe this result is due to the Supreme Court decision Badgerow v. Walters, which allowed Section 11 suits (Section 11 suits under the Securities Act of 1933 are one of the more common types of litigation against new public companies. In these suits, shareholder …