CICA, NRRA Discuss Merger

"We haven't made an announcement," said Carl Modecki, president of CICA. "But we are talking. Our board has not approved anything. There have been discussions, but there has definitely not been any decision made."

He said the board will vote on the matter and make a recommendation to CICA members, who will need to give their approval.

"I know there was an open comment at [NRRA's] meeting in D.C., but any comment that it is a done deal is very premature," he said.

NRRA released the news earlier this week at its annual conference in Washington, D.C.

"What was announced was the facts?there are some preliminary discussions going on," said Douglas Barnes, executive director of NRRA. "It's not a forgone conclusion."

He added, "We have talked to [CICA] twice in the past and nothing has come of it. It may this time; I don't know." NRRA's board voted to proceed with discussions with CICA, he said.

A merger of the two captive groups "makes sense," Mr. Barnes said. "There are so many different groups doing things out there that it just makes sense that we should be able to combine forces."

The primary motivation, he noted, is to have a stronger voice within the industry. Other reasons include having one conference instead of two. He added that some NRRA members are also CICA members, and could save time and money with a merger.

NRRA, he said, has 121 members. CICA said it has 285 members.

An issue for CICA, he said, is the fact that NRRA is more actively involved with legislation. NRRA has been working for several years to update the federal Risk Retention Act, for example.

CICA announced a rewrite of its mission statement earlier this year to emphasize information and networking. The new mission, at www.captiveassociation.com, is: "To provide the best independent information network to help our members succeed." It excludes any mention of legislation involvement.

NRRA's mission statement, available on the Web site, www.nrra-usa.org, reads: "The National Risk Retention Association is the voice of risk retention group and purchasing group liability insurance programs, organized pursuant to the Federal Liability Risk Retention Act."

It continues that NRRA's central purpose "is to promote Risk Retention Act-authorized group insurance programs as a practical, economical, efficient and financially sound option for distributing the liability risks of member insureds. NRRA fulfills its mission through education, communication, government relations, and judicial advocacy."