The NASW-Endorsed Professional Liability Insurance Program is structured as an RRG – a liability insurance company that is owned by its members.
The NASW Risk Retention Group (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.
RRG’s have been in place since 1986 when Congress passed the Liability Risk Retention Act. In fact, there are hundreds of RRGs that provide liability coverage to doctors, lawyers, educators, and other professionals.
The NASW RRG is an insurance company that meets all regulatory requirements of insurance regulators and is 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.
All NASW Risk Retention Group policyholders are members of a mutual insurance company and therefore their policy is evidence of their mutual ownership interest in the NASW Risk Retention Group a mutual insurance company.
The NASW RRG is a federally-authorized program regulated by the DC Department of Insurance, Securities, and Banking and is exempt from state guaranty funds. The program is reinsured by The Swiss Re Group.
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance, and other insurance-based forms of risk transfer. They are committed to adhering to all applicable legal and regulatory requirements, the highest professional and ethical standards, and its stated corporate values.
For more than 150 years, it’s been Swiss Re’s business to enable risk-taking. Together with its clients and partners, the company has helped people all over the world to turn pioneering ideas into reality or to get back on track when things go wrong. Swiss Re was chosen to reinsure the NASW-Endorsed Program because of its extensive experience with programs such as this.
The Swiss Re Group is bound by contract to this program, and the necessary monies to pay all potential future claims are set aside just as they are with any insurer. The NASW RRG was required to have sufficient capital and reserves before it could be authorized to write insurance by the regulators that oversee it. Members will not be liable for losses due to any reason.
The NASW-Endorsed Professional Liability Insurance Program is exclusively designed for the benefit of its policyholders – NASW insureds, and the benefits to members are many:
- The program is overseen by the NASW RRG Board of Directors, comprised of social workers and association insurance experts with members’ needs in mind. Instead of working on behalf of corporate shareholders, NASW Assurance Services works to serve you and the social work community. They manage the program to keep costs and premiums low and to ensure that members receive excellent, caring customer service.
- The finances and operations of our NASW-Endorsed Program are fully transparent. Unlike many insurance companies that focus on creating profits for corporate shareholders, our goals are to control costs, keep premiums low, pay program expenses, and then reinvest resources generated by the RRG in the program and its policyholders, in NASW members, and to advance the social work profession.
- As an insurance company owned by its policyholders and regulated by the District of Columbia Department of Insurance, Securities, and Banking, the NASW RRG will not invest in risky business ventures which created serious financial difficulties for other insurance companies during the recent financial crisis.
- This kind of insurance company will enable NASW and NASW Assurance Services to have much greater control and flexibility over how the professional liability program is structured. Policyholders can enjoy quick improvements to the professional liability program; for example, we will no longer have to file program changes in all 50 states for approval.
- And perhaps most importantly, only members participating in the NASW-Endorsed Program will continue to receive the support and advocacy on behalf of members should they be unfairly denied coverage or renewal.
Risk Retention Groups are commonly used for providing professional malpractice insurance and widely accepted by all types of managed care and allied health organizations. If any member has a question about a specific managed care company accepting the NASW-Endorsed Program, please contact NASW Assurance Services and let us know so that we can address it.