SIEF Helps Congressional Staffers Understand Risk Retention Groups
The basics of Risk Retention Groups (RRGs) was the focus of a presentation delivered today to key Congressional staffers at a luncheon seminar sponsored by the Self-Insurance Educational Foundation (SIEF). The foundation is affiliated with the Self-Insurance Institute of America, Inc. (SIIA).Andrew Cavenagh, Chair of SIIA’s Alternative Risk Committee, was the featured speaker for the event, which was held in the Rayburn House Office Building on Capitol Hill.
As part of his presentation, Cavenagh traced the development of Alternative Risk Transfer as a trend among businesses that now accounts for a majority of all commercial insurance coverage. He reviewed Congress’ role in authorizing Risk Retention Groups under the 1986 Liability Risk Retention Act (LRRA) as a response to the “liability crisis” that plagued businesses and professions at that time.
Cavenagh told the Congressional audience that RRGs can provide more efficient and beneficial coverage because of their inherent advantages of higher involvement by owner-insureds; more industry specific claims handling; more stringent loss control requirements, such as enhanced safety and professional practices; and more stringent underwriting.
He said that members of RRGs and prospective business and professional groups would look forward to changes in Federal authorization to allow RRGs to write commercial property coverage and which would create a well-defined dispute resolution process to decrease states’ ability to interfere with RRGs.
Today’s Congressional briefing was the latest in a series of briefings that the foundation has been providing to Congress consistent with its mission to raise awareness and understanding of self-insurance/Alternative Risk Transfer.
Additional information about the foundation can be accessed on-line at www.siia.org.
He said that members of RRGs and prospective business and professional groups would look forward to changes in Federal authorization to allow RRGs to write commercial property coverage and which would create a well-defined dispute resolution process to decrease states’ ability to interfere with RRGs.
Today’s Congressional briefing was the latest in a series of briefings that the foundation has been providing to Congress consistent with its mission to raise awareness and understanding of self-insurance/Alternative Risk Transfer.
Additional information about the foundation can be accessed on-line at www.siia.org.
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