ProBuilders Risk Retention Group for Contractors to Close

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Given the piss poor abilities of the so called management in place it is a surprise they are still open doing anything at all or that anyone beleives what they say.

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Allan, Allan, Allan. What don’t you get? You’re placing biz w/ RRG’s, then the most irresponsible of them all – ProBuilders – FAILS and goes out of business. They’re not winding down, they’re not unable to compete, THEY FAILED at properly underwriting risk and now they’re f-cked. Ever wonder why resposible underwriters EXCLUDE PRIOR WORK when following an RRG?? To avoid being next in line to pay the claims that ProBuilders won’t be able to pay now. “When new home construction picks back up, things could change”…? You’d place a homebuilder w/ an RRG? Did you even read the freakin article, Guy? Why would you steer a customer toward an RRG when you’re literally reading an article about the inherent foolishness of doing so? Your responsibility is to add value to the insurance chain, not to cram tough classes of business into sh-tty coverage w/ a carrier that ignores rate responsibility. Hopefully your clients come to realize that you’re the problem.

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Otherwise they woulda just downsized the staff, or expanded the reach of the program.

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Not the underwriters the jack asses who run the place who are now doing cranes of all things are the big buck guys. But hey don’t worry they can use the loss reserves to cushion thier retirements.

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The problem is one that has affected all RRGs. The Feds don’t allow them to write more than one line so they never build a balanced book. Their form is only attractive in a vacuum and at that time they have to write everything to build capital and their form of policyholders’ surplus…so their rates are terrible. And then when the market changes and they have Best’s rated competition their policyholders move to the competition….which leaves the RRG in the lurch and on a downhill slope because they can’t write enough premium to stay ahead of losses. Its a built in Catch 22 for RRGs. The NCIC RRG did secure a Best’s rating of, I think, B+ but staying there will be precipitous. One way for an RRG to secure a decent Best’s rating is to have little non-domestic reinsurance, well rated domestic reinsurers, and keep their net to a minimum. ProBuilders failed on each of those 3 counts.

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I would like to defend the underwriters. The underwriters made very good money at NBIS because they were well experienced and each and every one of them did a great job. The local management was also well educated and experienced. I’m proud to have worked for the Palm Desert Office because it was well run locally by each employee in that office. Nothing but great results from that office. This office had continues the lowest overall loss ratio in the Country. This RRG was well run unfortunately trends change and upper management has the final word. If NBIS ever came back I would work for them again.