Inter and NYIADA form first RRG domiciled in Oklahoma
Inter Insurance Agency has partnered with New York Independent Automobile Dealers Association (NYIADA) to form a new risk retention group (RRG), the first to be domiciled in Oklahoma.
Universal Casualty Risk Retention Group will provide loss control services and will write garage keepers liability, general liability, auto liability and mechanics errors and omissions insurance.
It is currently licensed to do business but is waiting until its reinsurance arrangements are finalised before beginning to write coverage, with February 1 as its target for having everything in place.
The RRG will write for franchised and non-franchised auto dealers, along with all businesses engaged in the automotive services industry in New York, New Jersey, Connecticut and Pennsylvania.
Dealers and other automotive services looking to join the risk association must be members of NYIADA.
Joe Chvasta, director of risk management for Universal Casualty and risk management consultant at Inter Insurance Agency, said the risk association was started in response to what he feels is an underserved part of the insurance market.
"We want to offer dealers and other auto servicers options and flexibility that they don’t have now," he said.
Universal Casualty's goal is to write $3.5 million in premium in its first year of operation and $5 million annually in five years times.
NYIADA executive director Paula Frendel said dealers expressed concerns about the kind of service that they received from insurers in the traditional market.
Susan Calabrese, underwriter with Universal Casualty, commented: “Service is a big issue for these companies.” The new risk association intends “to provide faster response time than larger traditional companies in this market; if there is an issue with a policy we’re going to reach out personally.”
The captive manager for Universal Casualty is Andrew Barile Consulting.