What is a risk retention group?

A risk retention group (RRG) is a liability insurance company that is owned by its member insureds. Under the Liability Risk Retention Act, RRGs must be licensed by one state.

Once licensed by its state of domicile, an RRG can insure members in all states in which it registers to do business.

Similar to other insurance companies, RRGs typically retain a portion of the risk they underwrite and purchase reinsurance for large claims.

Learn more about RRGs.