8 Traits of Successful Risk Retention Groups
Risk retention groups (RRGs) were born out of necessity during the liability insurance crisis of the 1980s, when many organizations found themselves unable to secure affordable or reliable coverage. In response, Congress passed the Liability Risk Retention Act (LRRA), creating a powerful alternative: a federally authorized structure that allows businesses with similar liability exposures to insure collectively across state lines.
Since then, RRGs have continued to prove their value—not just as temporary solutions during hard markets, but as long-term vehicles for better risk management and industry-specific support. Across business sectors, the most successful RRGs share a deep commitment to the missions of their members and address the unique challenges of their industry.
Featured Profiles: Successful RRGs in Practice
Executives from Owner-Operator Independent Drivers Association (OOIDA), Mental Health Risk Retention Group (MHRRG), MCIC Vermont, and Housing Authority Insurance Group (HAI) joined NRRA’s Template for Success webinar series to share how they’ve leveraged the RRG model to serve their members, navigate shifting regulatory and market conditions, and stay ahead of emerging risks.
With more than 25 years of proven stability, affordability, and member retention, these organizations offer real-world examples of what long-term success looks like for risk retention groups across four distinct business sectors.
OOIDA
Founded: 1995
Industry: Commercial Trucking
The Owner-Operator Independent Drivers Association RRG provides liability coverage for thousands of small business truckers across the United States. Originally founded as a member organization and advocacy group in 1973, OOIDA went on to form one of the first—and now the longest-operating—transportation RRGs. Ancillary programs such as a daily SiriusXM radio show, Land Line Magazine, permit and licensing assistance, and regulatory compliance tools keep members informed, engaged, and loyal even when commercial insurance rates drop. OOIDA’s long-term success is rooted in advocacy and a member-first approach that continues to deliver insurance solutions—and a voice—for America’s small business truckers.
MHRRG
Founded: 1987
Industry: Behavioral Health
The Mental Health Risk Retention Group was founded by behavioral health specialists to address a long-standing gap in affordable, dependable liability coverage for mental health providers. Unlike commercial carriers, MHRRG offers stable pricing, non-cancellable coverage, a robust dividend policy, and risk management services tailored to the realities of behavioral healthcare. Its sustainable governance model and alignment with the industry it serves have helped MHRRG retain members and adapt through decades of regulatory, clinical, and exposure shifts.
MCIC Vermont (A Reciprocal RRG)
Founded: 1998
Industry: Academic Medical Centers
MCIC Vermont was established during a hard market to provide long-term, cost-effective professional liability coverage for leading academic medical centers. Today, it insures more than 21,000 physicians and 8,000 hospital beds, making it one of the largest RRGs by gross written premium in the country. Serving institutions such as Johns Hopkins Medicine, Columbia University Irvine Medical Center, Weill Cornell Medicine, and Yale School of Medicine, MCIC’s strength lies in its member-driven approach—including targeted clinical risk reduction and advanced data analytics to support world-class healthcare and medical education.
HAI Group
Founded: 1987
Industry: Public and Affordable Housing
Housing Authority Insurance Group was formed to provide stable and affordable liability insurance for public housing authorities. Focused on the U.S. multifamily affordable housing sector, HAI takes the time to understand and address the day-to-day challenges of its members through programs like staff training, risk control toolkits, research, and resident engagement initiatives. Its mission-driven approach and deep sector expertise have made HAI Group a trusted, long-term partner for public and affordable housing organizations across the country.
8 Traits of Successful Risk Retention Groups
The RRG structure can be leveraged across many different business sectors. OOIDA, MHRRG, MCIC Vermont, and HAI Group share eight traits that have contributed to their long-term success.
#1: Solve a Niche Liability Insurance Problem
Successful RRGs are formed to address liability insurance gaps that the commercial market cannot or will not serve. Whether due to a hard market, high-risk exposure, or a long-standing lack of affordable options, these groups provide tailored coverage for industries with unique and underserved needs.
Examples:
Mental Health RRG was formed to provide stable, non-cancellable liability coverage for behavioral health providers during a time when they frequently experienced their policies being cancelled by commercial carriers.
MCIC Vermont was created when multiple independent medical centers decided to come together to stabilize their costs for long-term, cost-effective coverage that could weather through the vastly different market cycles.
#2: Deliver Added Value That Goes Behind the Policy
Ancillary programs, industry advocacy, complementary lines, and value-added services that address policyholders’ needs help build loyalty and preserve member retention—even during soft markets when commercial carriers may undercut RRG pricing.
Examples:
In addition to its continued advocacy for independent truckers, OOIDA supports its members through a range of practical programs, including a drug and alcohol testing consortium, life and health benefits, a permits and licensing group, and a compliance unit to assist with regulation, contracting, and leasing issues. It also provides trusted information resources, including Land Line Magazine—the most widely circulated trucking periodical in the U.S.—and a daily SiriusXM satellite radio show.
HAI Group adds value for its policyholders with around-the-clock access to online certification classes tailored to the housing sector, original industry research to support advocacy efforts, resident scholarships, and a community fire prevention poster contest.
#3: Help Policyholders Avoid Claims Before They Happen
Because the insurability and financial health of an RRG depend on the collective performance of its members, successful RRGs prioritize proactive risk management.
Unlike traditional insurers that often respond only after a claim is filed, RRGs are uniquely positioned to invest in prevention, helping their members reduce exposures and improve safety standards.
Examples:
Beginning in the early 2000s, MCIC Vermont launched targeted clinical initiatives aimed at reducing claims and improving care delivery. These programs help policyholders leverage their existing strengths while enhancing them with focused, data-driven interventions.
HAI Group’s risk management efforts concentrate on habitational risks. Its programs teach insureds how to self-identify potential exposures and offer tailored, practical solutions to mitigate them—empowering members to address risks before they escalate.
#4: Treat Policyholders Like Partners
Risk retention groups are not built on a traditional insurer–customer model. As member-owned and operated entities, RRGs succeed when their policyholders are actively engaged in governance, risk management, and long-term strategy. Successful RRGs treat their members not just as insureds, but as partners—aligned around a shared mission and committed to collective performance.
Examples:
Mental Health RRG’s board of directors includes behavioral health professionals and CEOs from across the country. Their legacy of industry-specific governance has produced a model that is both sustainable and adaptable—ensuring coverage remains aligned with evolving exposures, delivery models, and market demands.
OOIDA’s roots in advocacy have remained strong for more than 50 years. In a recent example, when federal policymakers proposed raising the minimum liability requirement for trucking operators to $4.5 million per truck, OOIDA led the charge in Washington, D.C.—educating lawmakers on the real-world implications for small business truckers and successfully blocking the change. Its commitment to policyholder partnership extends well beyond insurance, ensuring its members have a seat at the table.
#5: Build Trust With Reinsurers Early and Often
Reinsurance plays a critical role in supporting the financial stability and long-term viability of an RRG. But success in the reinsurance market requires more than just purchasing coverage, it requires building a relationship grounded in transparency, communication, and trust.
Example:
HAI Group CEO Ed Malaspina emphasizes that reinsurers should be viewed as strategic partners. He advises RRGs to develop strong, open relationships with their reinsurers, understand what risks they are willing to support, and maintain clear communication about the RRG’s risk profile and portfolio. That foundation of trust allows RRGs to weather difficult market cycles and collaborate on custom reinsurance structures that support growth and solvency.
# 6: Understand the Day-to-Day Realities and Challenges of Members
Because RRGs are owned and operated by their members, they are uniquely positioned to understand the specific risks, pressures, and operational realities their insureds face. That depth of knowledge allows RRGs to tailor underwriting, coverage, and risk support in ways commercial carriers cannot.
Examples:
At HAI Group, staff are encouraged to earn the Public Housing Manager (PHM) certification, acquiring the same skills and frontline experience as their members. This hands-on expertise helps the organization create solutions for policyholders that are grounded in real-world understanding.
At Mental Health RRG, board members are CEOs of behavioral health organizations from across the country. Their frontline insights combined with internal insurance and underwriting expertise enable the RRG to respond proactively to emerging risks, regulatory shifts, and evolving care models.
#7: Evolve With Policyholders and Their Risks
One of the greatest strengths of the RRG structure is its flexibility. High-performing RRGs use that flexibility to continuously adapt – evolving their coverage, services, and risk strategies in step with their members’ changing needs.
Example:
Over the years, Mental Health RRG has adjusted its offerings to reflect rising demand for services, growing workforce shortages, and shifting care models. For example, when the industry began integrating primary and behavioral health care to treat the whole person, MHRRG expanded its coverage to meet this new exposure demonstrating its ability to evolve alongside its members.
#8: Stay Mission First and Purpose-Driven
The most successful RRGs are anchored by a clear mission. They don’t just provide insurance—they exist to support, empower, and protect their members. That sense of purpose shows up in every aspect of the organization: from governance and risk strategy to communications and long-term planning.
Purpose-driven RRGs remain focused on delivering stable, affordable liability coverage while continuously seeking ways to create value for their policyholders. Their decisions reflect not only current needs, but a forward-looking understanding of where their members and industries are heading.
Example:
Mental Health RRG, OOIDA, MCIC Vermont, and HAI Group have all demonstrated how a strong sense of purpose can fuel long-term success—and keep members engaged for decades.
Conclusion: Setting Up Your RRG for Long-Term Success
While many risk retention groups are formed in response to temporary liability coverage gaps, the most successful groups evolve into long-term solutions by staying committed to the needs of their members. The traits outlined above offer a path to resilience, adaptability, and mission alignment as the liability landscape continues to shift.
Become a NRRA Member
As the nation’s only nonprofit dedicated solely to the RRG and RPG industry, NRRA provides advocacy, member support, education, and connections to help groups form, grow, and thrive. Become a member, explore our online resources, or join us at the upcoming RRG Leaders Summit to connect with the leaders shaping the future of RRGs.
