Risk Retention Group

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Risk Retention Group A risk retention group (RRG) is a state chartered insurance company that insures commercial businesses and government entities against liability risks. Risk Retention Groups (RRGs) are liability insurance companies owned by its members. RRGs allow businesses with similar insurance needs to pool their risks and form an insurance company that they operate under state regulated guidelines. RRGs may be formed under a state's captive or traditional insurance laws. Risk Retention Groups usually form in industries that face extremely high risks, such as medical and legal malpractice. In fact, medical malpractice coverage currently makes up the bulk of Risk Retention Group activity. Example: A group of 400 medical businesses are finding it difficult to obtain liability insurance coverage. With Risk Retention Groups there is more stability of insurance as in fluctuating market conditions, a Risk Retention Group allows members to more accurately know what their insurance costs will be and to plan accordingly. A key differentiator between the RRG and captive structure is that RRGs may only write liability coverage. The captive can write any coverage including buildings, contents, collision, cargo, warranty, cyber, etc. where the RRG will be limited to liability coverage only. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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