Which type of insurer provides coverage for groups of individuals with similar risk profiles?

Risk Retention Groups are specifically designed to provide coverage for groups of individuals or businesses that have similar risk profiles, allowing them to pool their resources and share the risk. This type of insurer is often established by a group of members who share a common interest or face similar risks, such as those in the same profession or industry. By concentrating on a specific group with similar exposures, Risk Retention Groups can tailor their coverage and premiums more accurately based on the collective risk characteristics of their members. This results in potentially lower costs and better coverage options for those involved.

In contrast, Life Insurance Companies primarily deal with individual life insurance policies, which do not focus on group risk sharing. Mutual Funds invest in a diversified portfolio of securities and do not offer insurance coverage. Health Maintenance Organizations provide managed health care services but do not operate like Risk Retention Groups, as they cater to individual health needs rather than focusing on specific risk groups.