Softening Market Drives PG Formations

The soft market appears once again to be driving purchasinggroup growth, which is no surprise. Market cycles have shaped theexpansion and development of such facilities since passage of theLiability Risk Retention Act in 1986, with formations increasing insoft markets and declining in hard markets.

This is how it works: The Liability Risk Retention Act createdtwo entities to address the liability needs of commercialinsureds–purchasing groups and risk retention groups. Purchasinggroups are comprised of homogeneous insureds who buy liabilitycoverage from admitted insurers, surplus lines carriers or riskretention groups.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.