The RRG cession rate continued to hold steady in 2021, even as the hard market contributed to the second largest increase in RRG premium on record. Risk retention groups ceded 46.6% percent of premium to reinsurers in 2021, almost identical to the cession rate of 46.4% in 2020.
Overall trends in RRG reinsurance have not shifted much recently. The biggest shift in the past few years was towards higher premium retention rates at risk retention groups serving the nursing home subsector—meaning that those RRGs are ceding less premium to reinsurers. That trend continued in 2021 with many established RRGs in the nursing home subsector keeping premium retention above 70%.
Furthermore, some newer risk retention groups serving the nursing home sector also reported above average retention rates. Interstate Insurance Company RRG, Inc. retained all its premium in 2021. Another newer nursing home RRG—LTC Insurance Company Risk Retention Group, LLC—retained 68% of premium in 2021.
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