RRG average premium hits 10 year high
Average risk retention group (RRG) premium increased more than 10 percent during 2014, its highest growth rate in a decade, according to JLT Towner.
Although the actual number of RRGs dropped, with 19 retirements during the year, the remaining RRGs had an average annual premium of $12.6 million.
“Some RRGs go into and out of business in lockstep with commercial rate movement, so it isn’t surprising that we see retirements continuing, considering the soft market,” said JLT Towner partner Len Crouse.
“What these results show, however, is that the remaining risk retention groups are well run. [RRGs] remain a viable alternative for organisations whether markets are soft or commercial prices increase.”
