The recent judgment in the arbitration proceedings for Spirit Commercial Auto Risk Retention Group and the conviction of Jasbir Thandi and associates at Global Hawk Risk Retention Group last year have begun to close the chapter on a challenging period for risk retention groups serving the Transportation sector.
The Risk Retention Reporter spoke with OOIDA Chief Operating Officer Rod Nofziger to discuss what differentiates risk retention groups like Spirit and Global Hawk from other Transportation risk retention groups, some of the factors that are contributing to the sustained growth of Transportation RRGs, how demographics for Truckers have changed, and in turn how those changes have changed how OOIDA RRG approaches underwriting.
Risk Retention Reporter: The Transportation sector remains the largest growth sector for risk retention groups. What characteristics of the greater insurance marketplace have contributed to this growth over the past decade?
Rod Nofziger: It’s no secret that transportation and trucking are, to say the least, challenging markets. The Trucking industry is vastly diverse with a complex regulatory environment. Risk pricing is arduous. Trucking insurers are seeing their margins increasingly squeezed despite continual rate increases. The Transportation market is not for the faint of heart. Risk retention group growth reflects the ability of RRGs to fill the knowledge and desire gaps in the trucking industry left from the traditional market. As mentioned, the Trucking industry is diverse, and risk retention groups are adept at providing effective and specialized coverage.
Risk Retention Reporter: Speaking of challenging markets, how does OOIDA deal with ever increasing jury verdicts?
Rod: Superior underwriting. In addition, we have a comprehensive knowledge of the trucking industry as a whole and are looking for members that are a good fit within OOIDA.
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