From the 2014 September Risk Retention Reporter
NAIC Summer Meeting Addresses Issues of Industry Interest
Several issues of concern to risk retention groups were discussed at the summer meeting of the National Association of Insurance Commissioners (NAIC) in Louisville, Kentucky in August, but both were at least temporarily resolved without hurting RRG interests, according to a memorandum to members issued by the National Risk Retention Association (NRRA)....
Connecticut to Domicile Its First Risk Retention Group
After passing updated captive legislation and simplifying the registration process for captives, risk retention groups, and risk purchasing groups, Connecticut is finalizing the details on the first RRG to be domiciled in the state, according to John Thomson, insurance program manager for captive insurance at the State of Connecticut Insurance Department....
Over Half of Ceded RRG Premium Flows through Affiliated Companies
The total volume of premium ceded by RRGs to reinsurers was $1,295.1M in 2013. Over half of that reinsurance premium—$716.4M—was ceded to affiliated insurance companies. The volume of reinsurance premium for these affiliated companies is largely driven by a few large RRGs that cede most of their premium to an affiliated company. ...
MCIC Pays $25 Million as Part of Settlement in Johns Hopkins Case
A risk retention group and a captive are contributing to the cost of a $190M class action settlement in which Johns Hopkins Health Systems Corp. agreed to compensate thousands of patients whose privacy was violated by a hospital doctor....
RRGs Most Likely to Retire in First Five Years of Operation
According to Risk Retention Reporter data most RRG retirements occur during the first five years of a RRG's operation. Of the 211 RRGs that have retired since the passage of the Liability Risk Retention Act, 129, 61.1%, retired in the first five years of operation. The number of retirements drops to 60 for RRGs active between six and ten years, and bottoms out at 23 retirements for RRGs active for more than a decade....
Other Industry News
U.S. Private-Sector Workplace Fatalities Hit Lowest Level
Workplace fatalities in the U.S. private sector fell last year to their lowest level since the government began collecting such data in 1992, but affected a disproportionate share of Hispanic workers, according to a government report released Thursday. Read more »
NFL’s Concussion Claims Could Reach $950 Million
The National Football League will have to pay about $950 million to resolve players’ head-injury claims, based on estimates that fewer than one in five will seek compensation for injuries eligible for cash awards, according to a newly released report. Read more »
Consumer sentiment in U.S. rises to highest level in 14 month
American consumer confidence rose to the highest level in more than a year in September, as households’ views on the outlook for the economy brightened. The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to 84.6, the highest reading since July 2013, from 82.5 the month before. Read more »
Bad news for captives from FHFA
The Federal Housing Finance Agency (FHFA) has proposed a rule that will effectively exclude captive insurers from membership of any one of the 12 Federal Home Loan Banks (FHLBs). This rule, if adopted, would prevent entities not eligible for membership from gaining access to bank advances and the benefits of membership through a captive insurer. Read more »
Join the RRR discussion group on LinkedInConnect with colleagues and discuss the latest topics.
RRGs & PGs
Lenders Protection Assurance Co., RRG
National Independent Truckers Ins. Co., RRG
Preferred Contractors Ins. Co. RRG, LLC
Preferred Property Program, Inc.