From the 2014 October Risk Retention Reporter
APIC and the LRRA Secure Another Victory with Nebraska Court Ruling
In a significant decision reaffirming the Liability Risk Retention Act’s (LRRA) preemption of state insurance regulations, the Nebraska Supreme Court has given Allied Professionals Insurance Company, A Risk Retention Group, Inc. (APIC) its third legal victory of the year....
Labrie Elected Chairman of National Risk Retention Association
Dan Labrie, President and CEO of HAI Group, which serves public housing authorities across the United States, was elected Chairman of the National Risk Retention Association (NRRA) at its Board of Directors meeting in Chicago on October 2, 2014....
RRGs Continue to Exhibit Financial Stability in Demotech Report
Demotech, Inc. released their Analysis of Risk Retention Groups Second Quarter 2014 in October. The report shows that risk retention groups continue to exhibit a great deal of financial stability, although RRGs as a whole did exhibit adverse developments in some key ratios through the first two quarters of 2014....
New Lloyd’s Syndicate Looking to Reinsure RRGs
Experienced London insurance professionals have recently formed Dale Underwriting Partners, an owner-managed Lloyd’s of London syndicate focused on providing property and casualty insurance and reinsurance, with a particular interest in reinsuring U.S. risk retention groups....
RRG Numbers Continue to Decline in Soft Market
The number of active risk retention groups fell to 236 in October, bringing retirements for 2014 up to 18, while formations for the year remained at four. This is an even sharper rate of decline than last year when the number of active risk retention groups fell from 261 to 250....
Other Industry News
U.S. considers Ebola screenings of airport arrivals
The Obama administration is considering screening airline passengers for Ebola symptoms as they arrive in the U.S. from some West African nations, an approach that had been previously rejected Read more »
Regulators split on benefits of proliferating US domiciles
The growing number of onshore United States domiciles is helping to further legitimize the captive industry, but there are concerns that diluted regulatory quality could cause harm in the long run. Read more »
Uptick in Severity of Claims
Law firm malpractice claims may be down, but the sting in them is spiking. In its fourth annual survey of lawyers’ professional liability claims, insurance broker Ames & Gough found that the severity of claims has increased over the past year for eight of the insurers that provide such coverage. Read more »
Lloyd’s records £1.67bn profit
The Lloyd’s market has recorded a £1.67 billion profit for the first six months of 2014, despite increasingly tough market conditions. The results, which are an aggregate of all the carriers underwriting on the Lloyd’s market, are an improvement over the equivalent period in 2013. Read more »
N.Y. financial regulator says to focus on cyber security
New York's financial regulator said on Monday his agency will focus on cyber security over the next year, saying the possibility of a systemic attack to the financial system is one thing that keeps him awake at night. Read more »
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RRGs & PGs
Lenders Protection Assurance Co., RRG
National Independent Truckers Ins. Co., RRG
Preferred Contractors Ins. Co. RRG, LLC
Preferred Property Program, Inc.