This article is the first in a series that will examine the history of risk retention groups to mark the 40th anniversary of the Liability Risk Retention Act of 1986 (LRRA). This feature looks back at the history of RRG activity in domiciles across the country.
Early Activity
The Risk Retention Reporter first reported on the number of operational risk retention groups by domicile in the January 1988 issue:
“Of states having captive laws, Vermont leads in RRG licensing with 13 operational RRGs, followed by Tennessee with four RRGs, Illinois with three RRGs, and Colorado with one RRG…Of states having no special captive legislation, Iowa leads in RRG licensing with three RRGs, followed by Missouri and New Mexico which have each licensed two RRGs. States which have licensed one RRG include: Florida, Georgia, Indiana, Louisiana, Maryland, Nebraska and Texas.”
The LRRA was signed into law in October of 1986. Less than 18 months later, fourteen domiciles had formed a risk retention group. Overall, thirty domiciles have formed a risk retention group since the passage of the LRRA, of which 18 still have an operational RRG.
Vermont’s Continued Success
Most notable among these early domiciles is Vermont which remains the largest risk retention group domicile both in number of operational RRGs and RRG gross written premium. In 2025, Vermont’s 73 domiciled risk retention groups reported gross written premium of $3,365.7 million.
The first Vermont-domiciled RRG to begin operation—United Educators Insurance, A Reciprocal RRG—is still active today and is the largest risk retention group in terms of gross written premium with reported premium of $488.1 million in 2025. Other risk retention groups formed in 1987 that remain active include Housing Authority RRG, Inc., Mental Health RRG, Inc., States Self-Insurers RRG, Consumer Specialties Ins. Co. RRG, and Title Industry Assurance Co. RRG.
Vermont is also the domicile of the only other risk retention groups to report more than $400 million in gross written premium—MCIC Vermont (A Reciprocal RRG) and Attorneys’ Liability Assurance Society Ltd., A RRG. For more information on the largest risk retention groups by premium, see the Special Report: Top 100 RRGs by Premium on page 6.
The level of consistency with which Vermont has operated in the risk retention group space is not the norm. There is ebb and flow for most other domiciles, with enthusiasm dampened by adverse experiences with risk retention groups such as insolvencies.
This is an excerpt, for the complete article subscribe to the Risk Retention Reporter.