What is the criterion for Builders who want to join the Group and how is it anticipated that the Group will be profitable?
The target market for the risk retention group will be builders with annual sales revenue between $2.5 million – $400 million dollars. A well-respected administrator with extensive experience in construction risks in California will carefully underwrite the builders participating in the risk retention group. The program requires policyholders to commit to aggressive risk management, quality control and a high level of customer service. Since Home Construction Insurance Company is a group policyholder-owned carrier, attention to loss experience and risk management tends to be elevated by the members, as they are shareholders in the insurance company. The coverages offered are broadly similar to those offered by traditional insurance carriers. The program was established after the completion of an exhaustive feasibility study completed by an actuarial firm and a captive manager earlier this year. We believe the risk retention group will offer our members insurance protection at a reasona
