At least one, an RRG that insures nonprofits, has more than 2,000 members. Since RRGs can underwrite only liability insurance, most have formed alliances with traditional insurers that offer property coverage to their members. Most, though not all, RRGs are open to agents and brokers and pay competitive commissions. Properly run risk retention groups offer many advantages to both their members and agents. RRGs fit in perfectly with niche-marketing strategies, since, by definition, each RRG serves a single industry.
Prices are stable.
As a member-owned entity, an RRG does not have to follow the fluctuating market price. Overhead is usually lower than for an ordinary insurance company. RRGs are usually managed by cost-conscious outside management firms that vie for RRG business. The cost savings can be passed on to the members through lower premiums or dividends. Specialized underwriting is another plus.