RRG's

insray · Post by **insray** » Thu Apr 27, 2006 7:42 am

I have been told by several underwriters this is due to the newer underfunded RRG's popping up all over the U.S. The concern is whether the RRG will still be around when a claim arises years down the road. The "true insurance companies" are concerned about defense costs of a claim involving the RRG's along with the true carriers even though the carrier applies a prior acts exclusion. Perhaps they do not like the competition or the lower "premiums" with the RRG's. I for one stay away from selling the RRG's as my E&O carrier applies a surcharge to my premium if I sell them.

Pamela · Post by **Pamela** » Thu Apr 27, 2006 8:22 am

The failure rate of RRGs has been the same as for other insurance companies. It may be convenient for some to ignore that information and conclude that the new RRGs will perform differently than their peers have performed in the past.