RRGs face array of potential threats

Risk retention groups (RRGs) confront a diverse range of potential challenges and must remain vigilant in managing risk, as emphasised by a discussion group at the ongoing Vermont Captive Insurance Association (VCIA) annual conference. The discussion covered a wide spectrum of topics and threats pertinent to RRGs.

Jointly moderated by Mary Ellen Moriarty, Vice President for Property & Casualty at College Insurance Company, Dan Belbusti, Chief Financial Officer of Eastern Dentists Insurance Company, and Tim Padovese, President & Chief Executive of Ophthalmic Mutual Insurance Company, the discussion delved into an array of pressing concerns highlighted by attendees.

The conversation began with technology, raising concerns over legacy systems operated by individuals approaching retirement age. The group acknowledged that while off-the-shelf systems might provide a cost-effective solution, certain systems could pose challenges in terms of modernisation.

A more challenging aspect addressed was lawsuits stemming from sexual molestation cases, particularly those involving educational institutions. These claims have direct implications on RRGs associated with these establishments, hindering insurance coverage acquisition.

The group urged the establishment of best practice rules in institutions to mitigate such cases, acknowledging the complexity and time required for effective implementation.

The discussion also touched on remote work's impact on collaboration and brainstorming within RRGs, as well as legislative concerns such as Florida’s H57/SB516 Bill. Attendees were urged to support efforts to prevent potentially detrimental legislation from being adopted.