President of Worth Insurance: Reciprocals are 'more resilient to market fluctuations and large-scale disasters'

Darren Craft, founder of Worth Insurance, said that reciprocal insurance exchanges offer cost savings, stronger member control, and greater resilience than traditional models.

"Reciprocal insurance exchanges offer a unique and compelling alternative to traditional insurance models," said Craft. "Since they often operate on a non-profit basis, they don't need to generate profits for shareholders. This democratic structure fosters a sense of ownership and accountability. This diversification of risk can make RIEs more resilient to market fluctuations and large-scale disasters."

In recent years, reciprocal insurance exchanges (RIEs) have emerged as a significant force in the U.S. insurance market, particularly in catastrophe-prone states like Florida. Unlike traditional insurers, RIEs are policyholder-owned and often appeal to markets where standard insurers have withdrawn due to high risk. As reported by AM Best in 2024, 21 new RIEs launched between 2017 and 2024, with nearly half based in Florida—highlighting their growing role in addressing insurance availability in difficult regions.

According to Worth Insurance, RIEs often provide lower premiums than traditional insurers because they operate on a non-profit basis and return any underwriting gains to members. This cost-efficiency allows them to offer competitive pricing, especially in markets underserved by large insurers. The company emphasizes that this structure helps make coverage more affordable without sacrificing quality.

A 2024 analysis by SageSure found that reciprocal exchanges have proven financially resilient during market shocks and natural disasters, in part due to their flexibility and member-centric structure. As traditional insurers pull out of high-risk areas, RIEs have stepped in to fill coverage gaps, especially in regions like the Gulf Coast. SageSure notes that their performance underscores RIEs’ stability in volatile insurance environments.

According to Worth Insurance’s official website, Darren Craft is the agency principal of Worth Insurance Services, LLC, with over 10 years in insurance and two decades in financial services. He previously led Zinc Insurance Services, a startup that pioneered point-of-sale insurance for luxury retail products. Craft’s career blends traditional insurance knowledge with innovation in risk solutions.