What is a Risk Retention Group?
A Risk Retention Group (RRG) is a liability insurance company that is owned by its members. As insurance companies, RRGs issue policies and retain risk.

What is the Liability Risk Retention Act?
The Liability Risk Retention Act (LRRA) is a federal law, passed by Congress in 1986 to help businesses, professionals, and municipalities obtain liability insurance which had become either unaffordable or unavailable due to the "liability crisis" in the U.S.

How does the Risk Retention Act work?
In passing the Liability Risk Retention Act, Congress provided insurance buyers with a marketplace solution to the 'liability crisis', enabling them to have greater control of their liability insurance programs. To achieve this goal, Congress created two entities: Risk Retention Groups (RRGs) and Purchasing Groups (PGs).

What are the advantages of risk retention groups?
As insurance companies owned by their members, some of the key advantages offered by risk retention groups (RRGs) to their members relate to the control members obtain over their liability programs. This control often translates into lower rates, broader coverage, effective loss control/risk management programs, participation by RRG members in favorable loss experience, access to reinsurance markets, and stability of coverage, notwithstanding insurance market cycles.

How to access this program?
The American Builders Insurance Company RRG program is underwritten through an exclusive group of managing general agents and can be accessed through local retail insurance agents with fast and knowledgeable advice and service. To learn more please contact us at your earliest convenience.

What is a Demotech Rating?
A Demotech rating, also known as a "Financial Stability Rating" (FSR), is a measure assigned by the company Demotech, Inc. to assess the financial stability of an insurance company, primarily focusing on their ability to meet policyholder obligations based on factors like balance sheet strength, reinsurance protection, and loss reserves; essentially indicating how well an insurer can withstand economic downturns or underwriting cycles. 

ABIC RRG has a Demotech Financial Stability Rating of A Exceptional https://www.demotech.com/company/12631/