What is a Risk Purchasing Group?
A Risk Purchasing Group (RPG) is a homogeneous group of insureds combining their individual buying power to negotiate group terms and conditions with standard insurance carriers. There is no financial risk and all limits of liability are dedicated to the individual participants. There are 884 RPGs currently operating in the United States under the regulations of the Federal Risk Retention Act of 1986.
What are the potential benefits of an RPG?
Other than the most obvious benefit of significant premium savings, some others are;
1) Uniform comprehensive coverage, with no hidden exclusions or limitations, since the policy form has been negotiated as a group and only the rates and deductibles are unique to individual firms.
2) Dedicated claims handling specialist(s) to assist in the reporting of new claims, the review and compilation of prior claims history, as well as the monitoring of all open claims affecting the RPG’s results.
3) Carrier stability as no carrier is going to quote a group of accounts without making a long term commitment to the class of business, given their initial financial investment in establishing a program.
Is there any commitment necessary in order to become a member and obtain a quotation in the RPG initiative?
Absolutely not, as indicated in the RPG registration form included here.
Can my current broker work with the RPG and, if so, will his involvement increase my costs?
We will gladly work with your current insurance representative and there will be no additional cost to your firm for their involvement. Your representative will receive their normal compensation.