The Preferra Insurance Company RRG is established under federal law and operates as a fully regulated insurance entity. It is not self-insurance. Domiciled in the District of Columbia, it falls under the supervision of the Department of Insurance, Securities, and Banking, which ensures compliance with capital and reserve requirements. Furthermore, Preferra Insurance Company RRG benefits from reinsurance provided by The Swiss Re Group and is rated ‘Excellent’ by A.M. Best Company for its financial strength.

Since the enactment of the Liability Risk Retention Act in 1986, RRGs have played a crucial role in offering liability coverage to various professionals, such as doctors, lawyers, educators, and other professionals.

Key attributes of the Preferra Insurance Company RRG include:

• Governance by a board of directors who share your background and understand your profession.  Unlike other insurance companies, fellow social workers and behavioral health professionals serve on the board of directors. They oversee your policy and handle your claims, providing an added level of insight, empathy, understanding, protection, advocacy, and assurance that goes beyond the standard practices of other insurance companies.
• Transparency in financial operations.
• Adherence to regulatory standards enforced by the District of Columbia Department of Insurance, Securities, and Banking, ensuring conservative investment practices.
• Enhanced flexibility in program management, allowing for swift adjustments without needing approval across all states.

With these features, the RRG model offers policyholders greater control over their professional liability coverage while maintaining regulatory compliance and financial stability.

Yes, Preferra Insurance Company RRG operates as a mutual insurance company. You are an owner of your liability insurance company. We take pride in our unique structure as a mutual insurance company. As a policyholder, you’re not just a customer; you’re an owner of our company. This model sets us apart from other insurance companies. The decisions we make are driven by looking out for the best interests of our policyholder-owners like yourself.

Rated ‘Excellent’ by A.M. Best Company for its financial strength, our Liability Insurance Program is tailored specifically for social workers and behavioral and mental health professionals and is designed to address your unique needs and potential risks you face in your daily work. Preferra exists to benefit its policyholders.

Led by a Board of Directors who share your background and understand your profession. Unlike other insurance companies, fellow social workers and behavioral health professionals serve on the board of directors to oversee your policy and handle your claims, providing an added level of insight, empathy, understanding, protection, advocacy, and assurance that goes beyond the standard practices of other insurance companies. Our commitment goes beyond policies; it’s about protecting our policyholders with heart. That’s why they are at the center of every decision we make, every day.

You are an owner of your liability insurance company. We take pride in our unique structure as a mutual insurance company. As a policyholder, you’re not just a policyholder; you’re an owner of our company. This model sets us apart from other insurance companies. Being a policyholder owner means you have the opportunity to vote on important decisions such as electing the board members overseeing your policy benefits.

You have FREE access to our risk management helpline. As part of our commitment to our policyholders, we offer access to risk mitigation consultations via our helpline. This is your first line of defense for protection. Our team of experts will work with you to identify potential risks and implement strategies to minimize them.

Your policy is reinsured by Swiss Re. One of the world’s leading reinsurance companies, Swiss Re is known for its financial strength, stability, and expertise. Being reinsured by Swiss Re provides an additional layer of security and confidence to policyholders and stakeholders, knowing that their insurer has the backing of a reputable and reliable reinsurer.

Transparency is at the heart of our operations. Unlike many insurers primarily driven by profits for shareholders, our objectives revolve around keeping costs at a minimum, maintaining affordable premiums, covering program expenses, and reinvesting resources back into the program and its policyholders.

A.M. Best Company is a credit rating agency specializing in the insurance industry. Its ratings provide an independent assessment of an insurer’s financial strength and ability to meet its obligations to policyholders.

An excellent rating from A.M. Best Company indicates that the insurer is financially stable and has a strong track record of fulfilling its promises to policyholders. It instills confidence among policyholders, agents, regulators, and other stakeholders in the insurer’s ability to withstand financial challenges and continue operating smoothly.

A.M. Best Company evaluates various factors, including financial performance, balance sheet strength, operating performance, business profile, and risk management practices, to assign its ratings. These assessments provide a comprehensive view of the insurer’s overall health and resilience.

Policyholders can have peace of mind knowing that their insurer has undergone rigorous evaluation and has been deemed financially sound and reliable by an independent rating agency. In the event of a claim or unforeseen circumstances, policyholders can trust that their insurer has the financial strength to fulfill its obligations and provide timely support.

The Preferra Insurance Company RRG operates as a federally authorized program regulated by the DC Department of Insurance, Securities, and Banking. As such, it is exempt from coverage under state guaranty funds. The program is reinsured by The Swiss Re Group, a prominent provider of reinsurance, insurance, and other risk transfer solutions.

With over 150 years of experience, Swiss Re upholds the highest legal, regulatory, and ethical standards in its operations. Its partnership with the liability insurance program stems from its extensive expertise in managing such programs.

Swiss Re is contractually bound to the program, ensuring that sufficient funds are allocated to cover potential future claims, like any other insurer. Preferra Insurance Company RRG was required by regulators to demonstrate adequate capital and reserves before receiving authorization to underwrite insurance. Members are therefore not held liable for losses arising from any cause.

Risk Retention Groups are frequently utilized for professional malpractice insurance and are generally accepted by various managed care and behavioral and mental health organizations. If you have inquiries regarding the acceptance of the liability insurance program by a specific managed care company, please reach out to us. We are here to assist and address any concerns you may have.