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Vermont has been the leading risk retention group domicile since the passage of the Liability Risk Retention Act in 1987. In addition, since Vermont passed its captive law in 1981, just four individuals have headed the captive division of the Vermont Department of Financial Regulation (Vermont DFR).Ed Meehan was the first director of captive insurance in Vermont. Len Crouse took …

Demotech, Inc. has released its report “Analysis of Risk Retention Groups—Second Quarter 2022.” The report finds that while RRGs continue to exhibit “a great deal of financial stability,” difficult conditions in financial markets have contributed to a deterioration in a number of financial ratios and a decrease in policyholders’ surplus. From the period from the second quarter 2021 through second …

By Joseph Deems, NRRA Executive Director Over the course of the last decade and a half, the National Risk Retention Association (NRRA) has had eight chairs, four have been women and four have been men. In our present environment, while we all talk about diversity and inclusiveness, in doing so, we sometimes overlook the opportunity to demonstrate how some people …

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 …

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 …

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 …

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, …

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 …

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 …

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 …