Praxis Reciprocal Exchange has entered the Florida property insurance market, receiving its certificate of authority from the Florida Office of Insurance Regulation (OIR) to operate as a licensed insurer. The arrival of Praxis Reciprocal Exchange marks a significant development for Florida homeowners seeking more options in property insurance.
Praxis Reciprocal Exchange Gains Approval in Florida
According to the Florida Office of Insurance Regulation, Praxis Reciprocal Exchange is now authorized to provide property insurance coverage throughout the state. The company is structured as a reciprocal insurer, meaning it is owned by its policyholders and managed by Pre Risk Management, LLC as the attorney-in-fact.
Praxis Reciprocal Exchange will offer a range of insurance products, including:
- Fire coverage
- Allied lines
- Homeowners multi-peril
- Inland marine
- Other liability
- Boiler and machinery
Innovative Approach and Experienced Leadership
The insurer is powered by advanced technology and benefits from strategic advisory support provided by leading reinsurance firms. Praxis Reciprocal Exchange’s leadership team brings over 75 years of combined experience in Florida’s property insurance sector, covering agency distribution, underwriting, claims management, and reinsurance.
According to OIR, Praxis Reciprocal Exchange is one of 17 new insurers approved since recent legislative reforms were enacted to stabilize and strengthen the Florida property insurance market. These new entrants have contributed more than $574 million in surplus funds to support market growth and resilience.
Praxis Reciprocal Exchange’s Role in Citizens Take-Out Program
Praxis Reciprocal Exchange is expected to begin offering policies in the coming months. The company will participate in the state’s “take-out” program, which allows private insurers to assume policies from Citizens Property Insurance Corporation, the state-run insurer. Praxis Reciprocal Exchange is approved to assume up to 25,000 policies from Citizens, according to OIR reports.
The take-out program is designed to reduce the number of policies held by Citizens and encourage growth in the private insurance sector. As more private insurers like Praxis Reciprocal Exchange enter the market, homeowners may benefit from increased competition and potentially lower insurance rates.
Reciprocal Insurer Structure and Policyholder Benefits
Experts in the insurance industry note that reciprocal insurers such as Praxis Reciprocal Exchange are structured to align the interests of policyholders with the financial and governance outcomes of the company. This approach is intended to promote transparency and accountability within the organization.
Policyholders in a reciprocal insurer are considered members and have a direct stake in the company’s performance and decision-making. This model is designed to support sustainable coverage and foster trust between the insurer and its members.
Florida Property Insurance Market Developments
The Florida property insurance market has faced significant challenges in recent years, including hurricanes, severe weather events, and market instability. According to the Florida Office of Insurance Regulation, the entry of new, well-capitalized insurers is a key factor in supporting long-term market stability.
Praxis Reciprocal Exchange and similar companies are leveraging advanced technology and strong reinsurance partnerships to manage risk and offer reliable coverage. These strategies are considered essential for operating effectively in Florida’s dynamic insurance environment.
The addition of Praxis Reciprocal Exchange is part of a broader trend of market stabilization, with the policy count at Citizens Property Insurance Corporation declining as private insurers assume more policies. OIR data indicates that this shift is expected to continue as additional insurers join the market.
Frequently Asked Questions About Praxis Reciprocal Exchange
What is Praxis Reciprocal Exchange?
Praxis Reciprocal Exchange is a newly established property insurer based in Florida. It is structured as a reciprocal insurer, owned by its policyholders and managed by Pre Risk Management, LLC.
How does Praxis Reciprocal Exchange participate in the Citizens take-out program?
Praxis Reciprocal Exchange is approved to assume up to 25,000 policies from Citizens Property Insurance Corporation. This helps reduce Citizens’ policy count and expands private insurance options for Florida homeowners.
What types of insurance coverage does Praxis Reciprocal Exchange offer?
The company offers coverage for fire, allied lines, homeowners multi-peril, inland marine, other liability, and boiler and machinery. These products are designed to meet a variety of property insurance needs in Florida.
Are reciprocal insurers different from traditional insurance companies?
Yes, reciprocal insurers like Praxis Reciprocal Exchange are owned by their policyholders, who have a direct interest in the company’s performance. This structure is intended to promote transparency and accountability.
When will Praxis Reciprocal Exchange begin offering policies in Florida?
Praxis Reciprocal Exchange is expected to begin offering policies in the coming months, according to the Florida Office of Insurance Regulation. Details may be updated as the company finalizes its launch plans.
