Navigation Insurance expert: Reciprocal insurance ‘provides comprehensive insurance protection at a reasonable cost’
Darren Craft, founder of Worth Insurance, said that reciprocal insurance exchanges are designed to offer more affordable and comprehensive coverage than traditional insurers.
“Many reciprocal exchanges operate on a non-profit basis,” said Craft. “Prioritizing the affordability of coverage for their members over profit maximization. They do need to maintain financial solvency. Their primary goal is to provide comprehensive insurance protection at a reasonable cost.”
Reciprocal insurance exchanges (RIEs) have gained traction in the United States, particularly in disaster-prone regions like Florida. Traditional insurers have scaled back in these areas due to escalating risks. According to Insurance Business America, RIEs such as Ovation Home Insurance Exchange and Orange Insurance Exchange have emerged to fill coverage gaps left by larger firms exiting the market. These member-owned models appeal to consumers by offering local governance and potentially lower costs, making them increasingly attractive amid rising premiums and climate volatility.
