Member-owned liability insurance companies. Set up in the US in the face of a ‘hard market’, a number of trade associations or groups of companies combined to form risk retention groups as allowed under the Liability Risk Retention Act 1986. The groups operate as insurance companies limited to writing liability covers for groups with a common interest. RRGS require members to capitalise the company. Many of the groups focus on pollution liability or product liability.
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A type of liability insurer owned by the policyholders. The members in this type of organization must be in the same type of business, so that they are exposed to the same type of liability risks. The organization spreads liability equally between the members and offers a different way of financing a liability.