What is Preferra Insurance Company RRG?
What is the Preferra Insurance Company RRG, formerly NASW Risk Retention Group, Inc?
The Preferra Insurance Company RRG, formerly NASW Risk Retention Group, Inc. (RRG) is a captive insurance company established to provide liability insurance for a specific group of policyholders who share a common interest, such as members of a professional association. The RRG offers a better way to benefit NASW Members.
The NASW RRG exists to serve the policyholders. Its specific structure gives policyholders significantly more control than it previously had over the professional liability insurance program. It improves ASI’s ability to make policy changes and enhancements to benefit NASW members. Allows ASI to participate in claims decisions and offers the potential for premium credits in future years when the RRG is well established, and program experience is good.
The NASW RRG is an insurance company authorized by federal law. It is not self-insurance. The company is chartered in the District of Columbia and regulated by its Department of Insurance, Securities, and Banking, which required it to have sufficient capital and reserves before it could be authorized to write insurance. Additionally, the NASW RRG is reinsured by The Swiss Re Group.
The NASW RRG is an insurance company that meets all regulatory requirements of insurance regulators. Registered in all states, so there should be no issue with the acceptance of insurance certificates. Policyholders have issued an insurance policy and certificate.
There are substantial benefits of the NASW RRG:
- Oversight by a board of directors comprised of social workers and association insurance experts who always keep members’ interests and needs in mind.
- Finances and operations are fully transparent.
- As an insurance company owned by its policyholders and regulated by the District of Columbia Department of Insurance, Securities, and Banking, the NASWRRG will never invest in risky business ventures which created serious financial difficulties for many other insurance companies during the recent financial crisis.
- Greater control and flexibility over how the professional liability program is structured, permitting quick improvements to the program. For example, we will no longer have to file program changes in all 50 states for approval.
RRG’s have been in place since 1986 when Congress passed the Liability Risk Retention Act. There are hundreds of RRGs that provide liability coverage to doctors, lawyers, educators, and other professionals.
The RRG structure is more efficient and allows ASI to be more responsive to NASW members, respond to the marketplace, and stay competitive with other programs. Under the RRG structure, ASI can quickly implement a program enhancement. With professional liability insurance being a top benefit of NASW membership, a more flexible, responsive structure is in the interests of NASW, ASI, and our NASW members.