2019 April Risk Retention Reporter Headlines and Article Excerpts

A Committed Membership Key to ATTIC RRG’s Success

Risk retention groups in the Transportation sector took a heavy hit in 2017, collectively reporting negative net income of $35.8 million—losses that put a number of Transportation RRGs under strain. American Trucking and Transportation Insurance Co., Risk Retention Group (ATTIC RRG), a Montana-domiciled Transportation RRG, was one of the groups feeling the pressure after negative net income of $5.7 million cut into surplus. “ATTIC’s surplus was at the mandatory control level under RBC,” said ATTIC President and CEO Ken Crippen. “We worked with regulators in Montana to put together an action plan for collecting capital and getting ATTIC back to a strong financial position. That plan was a success due to the commitment of ATTIC’s members to the RRG...

Special Feature: Interview with Sandy Bigglestone of Vermont

This month’s special feature is an interview with Director of Captive Insurance at the Vermont Department of Financial Regulation Sandy Bigglestone. The interview details the tools RRG regulators have and how those tools differ from those used to regulate traditional carriers, and given that the failure of Spirit Commercial Auto Risk Retention Group was one of the talking points of the 2019 CICA Conference, Bigglestone also details the steps regulators take when an RRG starts to get off track...

Caring Communities Serves Non-Profits Caring for Seniors

Caring Communities, a Reciprocal Risk Retention Group, (CCRRG) has been making a name for itself serving the senior living industry —non-profit organizations that provide senior housing and care, along with home and community based services. Formed in 2001, CCRRG grew out of the need that these communities had for insurance and risk management services, according to Ashur Odishoo, national director of sales and marketing. These communities “have very good results and risk profiles...but they were being lumped in with higher risk operators,” he said...

RRR Preview of Upcoming Conferences

The Western Region Captive Insurance Conference (WRCIC) will be held from May 20-22 at the Scottsdale Resort at McCormick Ranch in Scottsdale, Arizona. WRCIC is a joint conference hosted by the Arizona, Missouri, and Utah captive insurance associations. The conference kicks off with keynote speaker Tom Jones of McDermott, Will, & Emery on “Aligning Pocketbooks with Better Behavior.” The conference will also feature sessions on recent tax decisions, including the Syzygy Decision, and another session on using analytics to get the most of one’s captive insurance company...

RRG Ratings Roundup

A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” assigned to Allied Professional Insurance Company, A Risk Retention Group, Inc. (APIC RRG) The outlook for both ratings is stable...

2019 CICA Conference Recap

The 2019 CICA Conference was held from March 10-12 at JW Marriott Tucson Starr Pass Resort & Spa in Tucson, Arizona. According to the April 2019 Letter from CICA President Dan Towle, there were 585 attendees at this year’s conference. There was a strong emphasis on educational sessions this year and the resort’s picturesque location, a fair distance outside of downtown Tucson, kept most attendees on campus for most of the conference, giving the conference greater conversational vibe than usual...

Risk Retention Roundup

This month two new risk retention groups were added to the Risk Retention Reporter listings, and no RRGs were deleted, taking the total number of RRGs up to 219. One purchasing group was added to the Risk Retention Reporter listings, and no PGs were deleted, leaving the total number of PGs at 1,009...

Correction for the March 2019 Risk Retention Reporter

The article “Lancet Indemnity RRG Reports Negative Surplus of $8M” stated that “since the company has not yet been placed into receivership, the program manager and captive manager continue to collect fees for services provided.” Risk Services stated that they have not collected any fees from Lancet since July 2018...