The new chairman of an organization lobbying the government toallow federally-regulated risk retention groups to expand theircoverage areas said he expects to see the effort gain ground thisyear.

"Momentum has been building. Optimistically, I'd like to saywe'll get the attention of Congress, and I think we'll see if thisyear we can't make some good inroads," commented Larry L. Smith,who heads the American Risk Retention Coalition (ARRC).

The group was formed to facilitate expansion of the federalLiability Risk Retention Act (LRRA) to include property insuranceand other coverages.

Mr. Smith noted that ARRC's urgency to expand the LRRA washeightened by the withdrawals of major insurers from propertymarkets including coastal areas in several states following therecent hurricanes. "This is one of those priorities crying out tobe addressed," he told National Underwriter.

While not a panacea, self-insurance through risk retentiongroups, he added, has provided an alternative and has allowed "newvehicles and risk management techniques to be developed."

Mr. Smith, president of MedStar Liability Limited InsuranceCompany, a risk retention group based in Columbia, Md., toldNational Underwriter that with the new Congress, "all of us areinterested in what's going to happen with the various committeesthat might have responsibility for insurance regulation."

Mr. Smith noted that his organization would like to see the LRRAmore strongly solidified "so it doesn't erode in the future, andalso see it broadened."

The LRRA, he said, has been beneficial "in a number of fields,particularly in my field, which is medical malpractice insuranceand liability."

MedStar Liability Limited is comprised of the seven hospitals inthe Baltimore-Washington, D.C. region that are owned by MedStarHealth.

In a statement for the coalition, he said ARRC "will work toanswer the need for property insurance for RRGs that was expressedin the recent poll by the Risk Retention Reporter."

If Congress authorizes RRGs to provide property insurance, 40percent of responding RRG leaders in that reader survey said theywould provide the coverage to their members.

Mr. Smith said the group is "enthusiastic and excited" about theprospects for movement on the issue this year in Congress.

Mr. Smith, the organization's second chairman, said theassumption is that ARRC will have a "rotating chair," but that"since it's only our second year, time will tell."

He added that he accepted the position on the basis that itwould be a one-year appointment, "but I'll certainly be happy totake a look at it again next year, or I'll be happy to turn it overto someone else, as long as work continues."

Mr. Smith succeeds outgoing chairman Dick Goff of The TaftCompanies, an RRG management firm operating in many captivedomiciles. Mr. Goff has served as founding chairman of ARRC sinceit was launched early last year.

ARRC said it is a coalition of risk retention groups, tradeassociations and other interested parties who join in its advocacyto expand federal authorization of RRGs to offer propertyinsurance, excess workers' compensation and other coverages totheir member-owners.

Information about ARRC is available at www.arrcoalition.org.