August 05, 2014
Response by John Salisbury

First, a risk retention group is one form of a captive. The primary advantage of a risk retention group is that you do not need to have a fronting carrier and can write any type of liability coverage direct in any state where the rrg is registered. This can represent a significant cost savings.

The disadvantage is the an rrg can not write other lines of coverage i.e. property and w.c.,etc.