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.
Worth Insurance indicates that reciprocal insurance exchanges generally offer lower premiums than traditional insurers because they operate as non-profits and return excess profits to their members. This structure eliminates the need to generate shareholder returns, which can result in savings passed on to policyholders. These cost benefits make RIEs especially appealing in high-premium markets like Florida, where homeowners seek affordable alternatives.
Worth Insurance also reports that RIEs may offer more favorable claim payout experiences due to their member-focused design, although hard comparative data is limited. Their cooperative model incentivizes fair claims practices, but payout ratios can fluctuate based on the shared risk exposure of the member pool. In contrast, traditional insurers often maintain stricter underwriting to protect profit margins, potentially leading to lower claim satisfaction.
According to Darren Craft’s LinkedIn profile, he is the Founder and President of Worth Insurance, where he leads efforts to provide specialized home and condo coverage in Florida. Craft has held prior roles including Director of Business Development at Zinc Platform and Portfolio Manager at Kore Capital and holds CLCS (Commercial Lines Coverage Specialist) and CPRIA (Certified Personal Risk Insurance Advisor) certifications. He is also a Georgetown University alumnus with a strong background in insurance and financial services.