A risk retention group (RRG) is an alternative risk transfer entity created by the federal Liability Risk Retention Act of 1981.  Typically, RRG’s are corporations or limited liability associations formed for the primary purpose of assuming liability exposures on behalf of their members.  Created for entities with hard to place insurance needs, like doctors malpractice insurance, RRG’s have become a common way for companies to take advantage of business risk in a wide range of industries.


After September 11, the insurance market hardened which led to a period of rapid growth for risk retention groups.  Between 2000 and 2008 the number of RRGs quadrupled to reach 262. Besides hospitals and physicians, the healthcare sector provides liability insurance to nursing homes, dental practices, and HMOs. There are RRGs for educational institutions, churches, and for non-profit groups up to and including state lobbyists. Every year, RRGs are emerging in new business niches responding to the need for affordable and available insurance coverage.


RRGs provide their members with the following benefits:

  • Program control
  • Long-term rate stability
  • Customized Loss control and risk management practices
  • Dividends for good loss experience
  • Access to markets
  • Multi-state operations


Because of their individual goals and requirements there are too many aspects of RRG’s to discuss via this format however, if you are interested in learning more about this proactive approach please give us a call.  I am confident your group will benefit from this approach.