Risk retention groups (RRGs) are owned by member insureds to self-insure risks. Most RRGs (as captives) are not subject to the same standards for solvency regulation as traditional insurers, state requirements in areas such as financial reporting and corporate governance vary. As a result of the 2005 GAO Report, a number of proposals to implement additional governance requirements for RRGs have been put forth.

This article by Arthur Perschetz focuses on the status of the proposed corporate governance standards at the NAIC and federal level. Read more.