In this A.M.BestTV episode from the annual Vermont Captive
Insurance Association (VCIA) conference in Burlington, VT, captive
experts say that some risk retention groups (RRGs) that were formed to
take advantage of temporary hard-market conditions had poor outcomes
compared with RRGs that pursued better underwriting and reserving
Click on http://www.ambest.com/v.asp?v=medmalrrg818
to view the entire program. For full video coverage of the VCIA 2018
conference, including exclusive executive interviews, visit http://www.ambest.tv/vcia18.
The panelists spoke about the spate of insolvencies among medical
“Most of the insolvencies that we’ve seen have really been driven by
what I’ll call the entrepreneurial RRGs — those who came in at
the hard market and decided that this was a profit-making opportunity
for them,” said Bruce Whitmore, vice president and senior resource
consultant at Willis Global Captive Practice. “If we look at those RRGs
that were formed for the right purpose … those organizations have
continued to do well and will continue to do well in the future.”
Michael Reveliotty, business development leader at Coverys, said the
insolvencies are a concern for the rest of the marketplace, with that
concern extending to their insureds.
“The positive side is for the rest of the market, albeit challenging
times, there may be an opportunity, for the right price, for companies
to pick up and provide capacity to those affected policyholders,” said
Other VCIA-related episodes of A.M.BestTV include:
Soaring Risk: Panelists Explain How They Launched a Hang-Gliding
RRG: Risk professionals behind a RRG devoted to covering hang
gliders and their associations describe how they crafted their own
risk solution after losing traditional coverage: http://www.ambest.com/v.asp?v=hanggliding2818
Traditionally Low Profile, the Captive Sector Draws Increasing
Scrutiny: Executives say captive insurers are drawing increased
attention from regulators, tax authorities and their own sponsors: http://www.ambest.com/v.asp?v=vcia1818.
Rated Captive Insurers See Strong Performance Compared With
Commercial Peers: A.M. Best Associate Directors Susan Molineux and
Fred Eslami say the performance of rated captive insurers once again
outperformed their counterparts in the commercial casualty segment: http://www.ambest.com/v.asp?v=vciaadvance818.
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