What is Tower Hill Exchange

| Tower Hill Insurance Exchange

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by Floridians!

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2023 Exchange Annual Report

Annual Report 2023 | Tower Hill Insurance ExchangeAlthough Tower Hill Insurance Exchange began in 2023, Tower Hill Insurance Group has been protecting Florida’s homes for over 51 years. Our second annual report includes some of the highlights and results for 2023, along with financial data and a message from our CEO.

Despite Florida’s challenging insurance market and changes within the global reinsurance industry, Exchange and the Tower Hill Family of Companies remain financially strong and well positioned as a leading provider of residential insurance. In partnership with your insurance agent, we thank you for choosing to be an Exchange member. Our 500+ employees are dedicated to providing you service excellence all year round, and to always being there when you need us.

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  • Introducing Tower Hill Insurance Exchange

    Tower Hill Insurance is pleased to announce the formation of its newest risk-bearing entity, Tower Hill Insurance Exchange (“the Exchange”). The Exchange is a reciprocal insurer whereby the policyholders, also known as members, insure each other and share in the underwriting profits generated via subscriber savings accounts.

  • Why THIE?

    Tower Hill Insurance Exchange still has the same management team and strong member service that we’ve been providing for over 50 years. The Exchange currently holds a Demotech, Inc. Financial Stability Rating® of “A” (Exceptional) and aims to bring additional capacity to the Florida residential property marketplace during this unsettled time of dramatically rising premiums and declining coverage availability.

  • What’s a Subscriber Savings Account?

    As a member, you will receive a personal savings account, known as a Subscriber Savings Account (SSA), that will grow with the success of Tower Hill. This account will be established at a future date contingent upon the Exchange’s profitability and provides value to you when the company grows and prospers.

Subscriber Savings Accounts

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    Frequently Asked Questions

    Tower Hill Insurance Exchange is dedicated to providing the same outstanding customer service and claim service that Tower Hill has afforded Florida customers since 1972. Uniquely, the Exchange is organized as a “reciprocal insurer,” which means you as a member become a part owner in the Exchange. Below we’ve included answers to frequently asked questions about the Exchange.

    What is a reciprocal insurer, and how does it work?

    Tower Hill’s newest risk-bearing entity, Tower Hill Insurance Exchange ("the Exchange"), is considered a reciprocal insurer because the policyholders (aka members) will insure each other and share in the underwriting profits generated via subscriber savings accounts.

    Whereas conventional carriers are owned by shareholders or private investors, reciprocal insurance companies are owned by their members. Some of the best known and popular reciprocals are USAA, Farmers Insurance, Privilege Underwriters Reciprocal Exchange (PURE), and Erie Insurance.

    Who manages the Exchange?

    THIE will be managed by Tower Hill Risk Management (THRM) as the Attorney-in-Fact (AIF). THRM will be responsible for all facets of the Exchange’s operations. When you sign the Power of Attorney, you are authorizing the Attorney-in-Fact to manage the company on your behalf. Tower Hill Risk Management is an affiliate of Tower Hill Insurance Group, LLC.

    Besides Tower Hill Risk Management, who helps manage the Exchange?

    Tower Hill Insurance Exchange is also guided by an annually elected Subscribers Advisory Committee (SAC). No official powers beyond oversight are afforded to the SAC.

    Is Tower Hill Insurance Exchange an admitted or excess and surplus (E&S) lines company?

    Tower Hill Insurance Exchange is an admitted carrier and its members are protected by the Florida Insurance Guarantee Association (FIGA). The Exchange also purchases coverage from the Florida Hurricane Catastrophe Fund (FHCF) to reduce its overall loss in the event of a hurricane.

    What is Tower Hill Insurance Exchange’s industry rating?

    The Exchange holds a Financial Stability Rating® of A (Exceptional) from Demotech, Inc., as of October 18, 2022. KBRA assigned an Insurance Financial Strength Rating of BBB+ with a Stable Outlook to Tower Hill Insurance Exchange (Exchange) on December 28, 2021.

    In which states are Tower Hill Insurance Exchange policies available?

    Currently, Tower Hill Insurance Exchange products are available in Florida.

    How can I purchase a Tower Hill Insurance Exchange policy?

    Tower Hill Insurance Exchange products are available to consumers exclusively through the insurance agencies authorized to represent the Exchange and other Tower Hill affiliates. To purchase a policy, please contact your local insurance agent.

    Will State of Florida assessments be added to Tower Hill Insurance Exchange policies?

    As an admitted carrier in the State of Florida, the Exchange is subject to the same potential assessments from FIGA, the FHCF, and Citizens Property Insurance Corporation (CPIC) as all other Florida admitted insurers. Therefore, all Exchange members will have any assessments levied by these entities added to their policy.

    However, as an Exchange subscriber, your liability to the Exchange is limited to the costs of your insurance, including premium and surplus contribution, for your policy. You cannot be assessed for any premium shortfalls incurred by the Exchange.

    When will my current Tower Hill policy transfer to Tower Hill Insurance Exchange?

    At renewal, most Tower Hill Preferred, Tower Hill Prime, and Tower Hill Signature personal lines (i.e., homeowners, rental property, etc.) policies will transfer to the Exchange.

    Will my Tower Hill policy coverages change with Tower Hill Insurance Exchange?

    While your Exchange policy contains comparable coverage to your prior Tower Hill policy, we have made some coverage changes. For specific coverages included in your policy, please refer to your individual Declarations Page and Coverage Comparison chart that will be included with your policy offer. Please contact your insurance agent with coverage-related questions or to make policy changes.

    If I have a question about policy billing or need to report a claim, whom should I contact?

    Tower Hill Insurance Exchange still has the same management team and strong member service that Tower Hill has been providing to customers for 50 years! Please contact our Customer Service Center at (800) 342-3407) with questions about billing or to report a Claim. If you need emergency repair services, such as water extraction or roof tarping, contact CastleCare at 844-TOWER-11 (844-869-3711) for assistance 24/7. CastleCare is an exclusive benefit available for Exchange members and Tower Hill customers.

    What are Subscriber Savings Accounts (SSAs)?

    SSAs are accounts which allow reciprocal members to share in the Exchange’s underwriting profit. For Tower Hill Insurance Exchange members, SSAs will be established at a later date upon the Exchange's achieving underwriting profitability. Details on how the SSA works are spelled out in the Subscriber’s Agreement that the member is required to sign and return.

    Once the account is established, the member will be able to monitor their balance; however, they will not be able to access their balance until they leave the Exchange and are no longer a member. Accounts cannot lose value in the event the Exchange has an unprofitable year. Distribution of fund balances is at the sole discretion of the AIF but must be pre-approved by the Florida Office of Insurance Regulation (FLOIR).

    What is a Subscriber Surplus contribution?

    Each policy will include a Subscriber Surplus Contribution, which will be applied directly to the Exchange's surplus.

    The initial contribution will be 10% of the annual policy premium. Once the admitted Surplus is sufficient to support the growth projections of the Exchange, Subscriber Surplus Contributions may be reduced and/or eliminated at the discretion of the AIF. The Subscriber Surplus Contribution will be itemized on the Quote Sheet and Declarations page.