Learning from RRG failures
Article Abstract:
Risk retention groups have generally demonstrated a viable financial status since 1986, when the Risk Retention Amendments were passed, and the few failures offer instructive lessons. Of the six groups that have declared insolvency, most failed for the same reasons. These include inadequate funding, insufficient regulatory oversight, alleged fraud, and lack of participation on the part of members in company operations. Risk retention groups in the transportation business have been more susceptible to insolvency than those in other areas.
Publication Name: Best's Review Property-Casualty Insurance Edition
Subject: Insurance
ISSN: 0005-9714
Year: 1993
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Decision time at Lloyd's
Article Abstract:
Lloyd's of London may change its policy of unlimited liability, but Chmn David Coleridge says the company may use a central loss sharing fund supported by members to help limit losses. The large losses suffered in 1989 and 1990, due to costly disasters, have led to claims of at least $675 million from their investors. In turn, 64 US investors are using US courts to try to recover $9 million. Lloyd's also faces a loss of public confidence according to a survey of 459 external names.
Publication Name: Best's Review Property-Casualty Insurance Edition
Subject: Insurance
ISSN: 0005-9714
Year: 1992
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London
Article Abstract:
The London insurance industry saw increases in rates and reductions in underwriting capacity due to a number of disasters in 1991. Most notable were Typhoon Mireille, a $200 million fire at the London Underwriting Centre at Minster Court and massive winter storms. As a result, Lloyd's of London and other companies are deserting certain classes of the insurance market in order to stop the trading losses.
Publication Name: Best's Review Property-Casualty Insurance Edition
Subject: Insurance
ISSN: 0005-9714
Year: 1992
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