Risk Retention Structure

Risk Retention Groups are created under the Federal statutes to allow like businesses to form an insurance company to insure certain lines of business. In these companies, all insureds must also be owners of the company. In other words, each policyholder is also required to buy stock in the risk retention group company.

The benefit of this arrangement is that the insurance company is domiciled in one state and is governed by the laws of that state and the Federal act. It can then operate in additional states with fewer licensing requirements.

Risk Retention Groups work best for certain industry groups and certain lines of business. Please contact us at Venture Captive Management, LLC to discuss your group’s concerns.