Defying historical soft-market patterns, formations of risk retention groups and purchasing groups so far this year are running neck and neck–with 17 RRG formations and 18 purchasing group formations.
This is contrary to cycles over the last 19 years, where purchasing group formations were characteristically higher during a soft-market phase.
Typically during soft markets, traditional insurers lower rates to make liability insurance more available and affordable. This causes an increase in purchasing group formations and a decrease in self-insured RRG formations.
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