2002 Risk Retention Group Formations Hit Double-Digits
With liability insurance becoming increasingly unavailable and unaffordable, risk retention groups have come to the rescue.
Last year saw an explosion of RRG formations. Twenty-one new RRGs were formed in 2002, bringing the total number to 90–the highest number ever reported.
The only other years in which formations reached double-digits were in the 1980s, immediately following passage of the Liability Risk Retention Act.
Coupled with the surge in RRG formations is a plunge in RRG retirements. In 2002, for the first time since passage of the LRRA, there were no retirements.
The accompanying table identifies formations and retirements from 1987 to 2002.
Karen Cutts, J.D., is managing editor and publisher of the "Risk Retention Reporter," a monthly newsletter based in Pasadena, Calif., that she founded shortly after passage of the 1986 Liability Risk Retention Act.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 6, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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