Risk Retention Roundup

This month four new risk retention groups were added to the Risk Retention Reporter listings and three RRGs were deleted, taking the total number of RRGs up to 238. No new purchasing groups were added to the Risk Retention Reporter listings, and no PGs were deleted, leaving the total number of PGs at 1030. Three of this month’s new risk …

The Challenges of Prosecuting Insurance Fraud: A Conversation with Butler Snow’s Benjamin Whitehouse

On February 18, 2022, the insolvency proceedings regarding Spirit Commercial Auto Risk Retention Group (Spirit) moved to arbitration after an appeal to the Nevada Supreme Court by Nevada Insurance Commissioner Barbara Richardson was denied. Nevada regulators allege that over $40 million is missing from Spirit. In the appeal, Richardson argued that arbitration agreements that Spirit made with its service providers …

Kevin Mead on His New Position and the 2022 VCIA Conference

In February 2022, Kevin Mead was appointed as the new VCIA President. VCIA will also be holding its first in-person conference since 2019 in August of this year. The Risk Retention Reporter spoke with Mead to discuss the new position and what he expects for the 2022 VCIA Conference. Risk Retention Reporter: What aspects of the captive industry drew you …

RRG Ratings Update—Positive Outlook for Allied Professionals

AM Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to stable from negative for ProAssurance Corporation and its groups members. A.M. Best also affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “bbb+” (Good) and all existing Long-Term ICRs of ProAssurance Corporation. In addition, AM Best affirmed the FSR of A- (Excellent) …

2022 Captive Insurance Conference Preview

It looks like the summer and fall of 2022 will be a busy season for the captive insurance industry. Attendance at earlier conferences such as the 2022 CICA International Conference and 2022 RIMS Conference was strong. VCIA President Kevin Mead noted that two of the hotels for the upcoming VCIA Conference are already sold out—despite registration not opening for a …

Envision Healthcare Repurposes its Dormant RRG

When Emergency Capital Management (Vermont), LLC Risk Retention Group (Emergency Capital Management RRG) entered a dormant state at the end of 2017, it seemed that another risk retention group serving the Healthcare sector had closed its doors in the protracted soft market. Now Emergency Capital Management RRG—since acquired by Envision Healthcare— is back and on track to become one of …

Trends in RRG Retirements: Were the 2010s Historically Bad?

The risk retention group industry is currently booming with new formations at the highest level since 2007. Much of that growth can be attributed to a hard insurance market that is contributing to new RRG formations across a range of business sectors. But what were the trends in RRG retirements since the LRRA passed? The current boom arrives in the …

2022 CICA Conference Recap: Strong Attendance and Enthusiasm

There was strong attendance at the 2022 CICA International Conference held from March 6 to 8 in Tucson, Arizona. Nearly 500 captive industry professionals attended the conference which had a strong emphasis on networking as the captive industry looks to move past the pandemic. During his opening address, which marked the 50th anniversary of CICA, CICA President Dan Towle addressed …

CPLIC RRG Assigned Demotech Rating

Demotech, Inc. has assigned a Financial Stability Rating of A, Exceptional, to Claim Professionals Liability Insurance Company, RRG (CPLIC RRG). CPLIC RRG formed in Vermont in 2004 to provide general liability and errors & omissions coverage to members of National Association of Independent Insurance Adjusters and other independent claim professional firms. CPLIC RRG also provides employment practices liability and cyber …

UE Member Wins Case at US Supreme Court

The Houston Community College System (HCCS), a member of United Educators Insurance, A Reciprocal Risk Retention Group (UE), has won a case at the United States Supreme Court in a unanimous ruling. The ruling supported the ability of publicly elected boards to verbally censure their members. In 2013, David Wilson was elected to the Board of Trustees of HCCS. HCCS …