SageSure announced that reciprocal exchanges can provide lower premiums and maintain affordability, even with a surplus contribution. The announcement was made in a press release.
According to Investopedia, reciprocal insurance exchanges are owned and governed by their policyholders, who are also insured. This structure allows policyholders to directly share risk and premiums, aligning the insurer's goals with customer needs. The model emphasizes the welfare of its users and long-term stability over short-term profits.
The Insurance Journal reports that reciprocal exchanges have shown strong growth and resilience in Florida’s challenging insurance market. Several reciprocals, including the one managed by SageSure, have gained regulatory approval and established reinsurance-backed structures, allowing them to write new policies and assume greater market share. This development offers a viable alternative to traditional insurers that have exited the state.
As reported by the Florida Office of Insurance Regulation (FLOIR), reciprocal insurers are demonstrating financial strength and innovation by using surplus contributions and diversified capital strategies. These structures provide enhanced stability and solvency, even amid frequent hurricane risks. FLOIR has encouraged alternative models like reciprocals to bring competition and sustainability to the market.
SageSure is one of the largest managing general underwriters serving catastrophe-exposed property markets across the U.S., including Florida. The company partners with both reciprocal exchanges and traditional carriers to offer homeowners insurance solutions tailored to high-risk areas, with a strong emphasis on digital tools and underwriting innovation. With over a decade of operational experience, SageSure now manages over 400,000 policyholders and continues to expand through partnerships with capital-backed risk structures.