Association Of Governmental Risk Pools

What Does Association Of Governmental Risk Pools Mean?

The Association of Governmental Risk Pools (AGRIP) is the umbrella organization for municipalities and government entities in the U.S. involved in risk management and resource gathering to address their insurance needs. AGRIP sets the standards for these activities, collectively known as pooling, and conducts research to enhance public entity pooling practices.

Insuranceopedia Explains Association Of Governmental Risk Pools

During the 1970s and 1980s, an economic crisis triggered by rising oil prices led to increased interest rates. One of the sectors affected was the U.S. insurance industry, which had to raise premiums to maintain financial solvency.

In response, municipalities began pooling their resources to manage insurance risks. This pooling covered liabilities of officials, damage to local government vehicles, and other government-related issues that would typically be handled by private, independent insurance companies. Public entity pooling works much like the protections offered through standard business insurance, except members contribute to a shared fund instead of paying premiums to a private insurer. The risks these pools take on are similar to what private companies handle through general liability insurance, including bodily injury and property damage claims brought against the organization. This approach became known as public entity pooling.

These pooling units eventually came together to form AGRIP. Today, AGRIP oversees the pooling activities of its members and conducts research to improve these practices.