Association Of Governmental Risk Pools
What Does Association Of Governmental Risk Pools Mean?
Association of Governmental Risk Pools (AGRIP) is the umbrella organization of municipalities and government entities in the US involved in risk management and resource gathering to address their insurance needs. AGRIP sets the standards for these activities collectively called as pooling and also embarks on research to further improve public entity pooling activities.
Insuranceopedia Explains Association Of Governmental Risk Pools
During the 70s and 80s, there was an economic crisis brought about by the price increase of oil which affected the interest rates. Among those affected by it is the insurance industry in the US which had to increase its premiums to maintain financial solvency.
By then, municipalities decided to pool their resources together to meet insurance risks. Risks involved covered liability of officials, damage to local government vehicles, and other local government-related issues that might have otherwise been taken care of by a private and independent insurance company. This step is what is called as public entity pooling.
All these pooling units converged together to form AGRIP. AGRIP now oversees the pooling activities of its members and does research to help improve these activities.