Softening Market Drives PG Formations
The soft market appears once again to be driving purchasing group growth, which is no surprise. Market cycles have shaped the expansion and development of such facilities since passage of the Liability Risk Retention Act in 1986, with formations increasing in soft markets and declining in hard markets.
This is how it works: The Liability Risk Retention Act created two entities to address the liability needs of commercial insureds purchasing groups and risk retention groups. Purchasing groups are comprised of homogeneous insureds who buy liability coverage from admitted insurers, surplus lines carriers or risk retention groups.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
