Transit Insurance Group made the decision transform into a sponsored captive to better serve the “diverse” needs of the public transit community within the United States.
The captive was originally formed as Transit Re 20 years ago, but is now a Vermont-domiciled cell under Transit Insurance Group.
According to Ci DataHub, Transit Insurance Group is managed by Strategic Risk Solutions and was formed on 25 August, 2022.
Transit Insurance Group is comprised of US transit risk pools and provides capacity for liability risks.
Barbara Rhoades, CEO of Ohio Transit Risk Pool and a board member of Transit Re, said the captive was originally formed in partnership with the Michigan Transit Risk Pool.
“Our members are all pure public transit, and we run about 70 million miles of public transit a year,” Rhoades said speaking on the latest episode of the Global Captive Podcast.
Rhoades said there is significant pressure in the market to provide more avenues for coverage across different types of public transit in the US.
“The current insurance market for transit is incredibly challenging, making it difficult to secure the necessary coverage,” she said.
Rhoades said this need has been growing for several years, leading to efforts to collaborate more effectively as a public transit community across the country.
“Our captive members, who form the underlying risk pool, along with Northern Arizona Intergovernmental Public Transportation Authority (NAIPTA), have been particularly forward-thinking in fostering a sense of community and mutual support,” Rhoades said.
“By creating an umbrella under the Transit Insurance Group, we’ve enabled the formation of distinct cells tailored to meet diverse needs within public transit.”
Rhoades said the captive is seen as an extension of the risk pool.
“Sometimes I even describe it as a pool of pools,” she added.
Sandy Bigglestone, deputy commissioner of captive insurance in the State of Vermont, said the State’s law is very open to allowing transformations similar to Transit Re’s.
“It’s a straightforward process,” Bigglestone said. “I remember how the conversation went and the filings that were needed to allow them to make that change, and to me it was very straightforward.”