Darren Craft, founder of Worth Insurance, said reciprocal insurance exchanges offer policyholders collective ownership and potential cost savings over traditional insurers.
"Reciprocal insurance exchanges offer a unique alternative to traditional insurance companies," said Craft. "Instead of shareholders, policyholders, known as subscribers, own and participate in the exchange. This cooperative model often leads to lower premiums, greater control for members, and a specialized focus on specific industries or coverage types. It's important to understand their potential limitations before making a decision."
Reciprocal insurance exchanges (RIEs) have seen renewed growth in the U.S., especially in catastrophe-prone states like Florida, due to their member-owned, nonprofit structure that promotes cost efficiency and risk-sharing. According to A.M. Best, at least 21 new RIEs were established from 2017 to 2024, with nearly half located in Florida, as insurers seek alternatives to traditional stock-based models. The regulatory framework has also evolved, with the National Association of Insurance Commissioners adopting a group capital calculation to strengthen oversight of these exchanges. As reported by Lexology, this regulatory support has enhanced the credibility and expansion of RIEs.
According to SageSure, reciprocal insurance exchanges typically offer lower premiums than traditional insurers because they are nonprofit entities that return surplus funds to their members rather than to shareholders. Their structure allows for reduced administrative costs and improved risk pooling, which helps mitigate premium volatility. Worth Insurance also notes that the reciprocal model promotes financial stability, especially in volatile markets like Florida, where premium affordability is a critical issue.
As reported by Insurance Business America, membership in reciprocal insurance exchanges has climbed significantly in recent years, reflecting increased consumer confidence in this model. In early 2025, Tailrow Reciprocal Exchange assumed nearly 14,000 policies from Florida’s Citizens Property Insurance Corporation, accounting for about $35 million in in-force premiums. This transfer is part of a broader trend where policyholders seek out RIEs as financially resilient alternatives in high-risk markets.
According to Darren Craft’s LinkedIn profile, he is the founder of Worth Insurance and holds industry certifications such as CLCS (Commercial Lines Coverage Specialist) and CPRIA (Chartered Private Risk and Insurance Advisor). Craft has a background in building technology-driven insurance agencies and specializes in offering tailored solutions to clients in complex markets. His professional focus includes leveraging tech platforms to streamline the insurance process and improve customer value.