Risk retention groups

Risk retention groups (RRGs) are a type of insurance company formed by members who share similar risks. These groups allow businesses or professionals, often in the same industry, to pool their resources and collectively manage their insurance needs. By sharing the costs and responsibilities of risk, members often find lower premiums and tailored coverage. RRGs are regulated by states, and they must reserve funds to pay claims. This model not only helps in managing risk more effectively but also grants members more control over their insurance solutions.