RRGs' Premium Volume Increased Dramatically in 2022: Report

Risk retention groups' (RRGs) premium volume increased significantly in 2022, according to the Risk Retention Reporter.

RRGs' gross premiums rose to nearly $4.9 billion, an increase of 12.9 percent from 2021, when RRGs generated just over $4.34 billion in gross premiums.

"This is the largest premium increase in dollar terms for the RRG industry, surpassing the premium growth of $527.0 million in 2003 and $519.3 million in 2021," the Risk Retention Reporter said.

In all, 162 risk retention groups had premium increases, and 63 RRGs had premium declines.

Risk retention groups were first authorized under legislation Congress passed in 1981. Under that law, RRGs only were allowed to write product liability and completed operations coverage for policyholder-owners. In 1986, Congress expanded the law by allowing RRGs to write all commercial casualty coverages except workers compensation.

After meeting the licensing requirements of one state, an RRG can operate nationwide with minimal interference from nonchartering state regulators.