RRGs Providing Options For Insurance Buyers A sudden increase in the number of newly formed captives is expected in times when the commercial insurance market is incapable of providing protection for a fair price.

Downgrades of notable reinsurance and insurance companies, less competition, higher fronting costs, and strict underwriting are compelling savvy insurance buyers to look into the variety of alternative risk transfer methods available.

But what has been notable in this current market is the dramatic rise in the number of risk retention groups, commonly called RRGs.

Like a captive, an RRG is an alternative risk transfer program that was borne out of necessity by buyers who wished to create stability and consistency in insurance pricing.

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