Physicians in NYS may experience problems, distractions and disruptions if insured by an RRG that has been declared insolvent. As a service to our policyholders, we are providing information that describes what to expect if your RRG is declared insolvent.
In a recent special report on the insurance industry in the United States, A.M. Best – a leading insurance rating organization – notes a disturbing trend among risk retention groups (RRGs): they appear to be failing at an increasing rate.
The potential service disruption and financial loss caused by the closure of Health Republic Insurance of New York illustrates the importance of insolvency protection for all insurers (professional liability companies included).
In the September issue of Risk Retention Reporter, it was noted that almost half of the 452 risk retention groups that formed since 1986 have retired.