Risk Retention Groups
Like dental practices, Risk Retention Groups (RRGs) are for Main Street and not Wall Street. The RRG structure allows the company to act differently than most publicly traded stock companies, which typically must split their focus between customers and shareholders. A RRG is a member-owned insurance company and is created under the federal Liability Risk Retention Act. Members (policyholders) must be engaged in similar businesses and a large percentage of RRGs are healthcare related. A RRG is subject to the state insurance laws where it is domiciled and then registers in the other states in which it does business.
Being a RRG means we exist for the benefit of our members and provides the opportunity to share in the company’s favorable results.
RRG Benefits Include:
- Owned by its members
- Self-governance, dependability and reliability
- Taking a long-term view and doing what is right for members
- Profits can be distributed as dividends and/or kept in the RRG to grow capital base
- Control over how claims are handled
- Control over how premiums are set
- Offer long-term rate stability
- Efficient operations overhead costs
- Flexibility to customize coverage as needed