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 …

CICA Looks Forward to Fall Forum

The Captive Insurance Companies Association will be holding its Fall Forum from October 10 to 13 at the JW Marriott Starr Pass Resort & Spa in Tucson, Arizona. The Fall Forum will be the first non-regional event to be held with in-person attendance since the outbreak of the coronavirus pandemic in March of 2020. The 2020 CICA International Conference, initially …

RRG Cession Rate Holds Steady in 2020

The risk retention group cession rate held steady in 2020, with RRGs collectively ceding 45.8% of premium to reinsurers in 2020, a slight increase from the 45.4% of premium ceded to reinsurers by risk retention groups in 2019. The hard market has tightened the reinsurance market, but that tightening does not appear to have had a significant impact on overall …

Holding Steady: RRG Captive Manager Premium Rankings 2020

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 …