Risk retention groups possibly to start offering property insurance

National Underwriter is reporting that legislation will be introduced in the U.S. House of Representative that would allow risk retention groups to sell commercial property insurance.  This legislation would also give the Treasury Department broad new powers to oversee the industry with authority to review disputes between risk retention groups and regulators in states where they are not domiciled and offer interpretations regarding the Risk Retention Act.

Currently, under the 1986 Risk Retention Act, risk retention groups are limited to offering liability insurance with the exception of workers’ compensation.

A similar proposal was introduced in 2008.  Supporters of this proposal include the Self-Insurance Institute of America, the National Risk Retention Association, and the Risk and Insurance Management Society.

Let us know what you think of this idea.