When members share what they love about PURE, rarely does our business model come up. And yet, that model is what makes PURE, PURE.
We are a “reciprocal insurance exchange” which simply means a group of people who come together to transfer risk for their mutual benefit.
Here's How it Works
When members join a reciprocal, they sign a Subscriber's Agreement which assigns a third party to manage the business on their behalf. In PURE's case, that third party is PURE Risk Management (PRM), a company owned by Tokio Marine.
A percentage of your yearly premium goes to pay PRM. And the rest goes toward claims and other expenses. If there’s anything left over, we aim to return it to you, the membership, in the form of an allocation to your Subscriber Savings Account—SSA for short. This removes any incentive that might exist to charge the highest price or to skimp when paying claims.
SSAs stay on the company balance sheet, contributing to PURE’s financial strength. If you ever leave PURE, the money in your SSA is yours to take. This keeps us focused on serving you well and delivering greater value. And after 10 years with PURE, you earn Gold status and become eligible for cash distributions from your SSA.
In addition to premiums, members make surplus contributions every year for the first five years. These also increase PURE’s financial strength. It is important to note that, even after these contributions, members generally still see savings. Together, SSAs and surplus contributions provide a low-cost way for PURE to stay financially strong and pay claims, while reducing reliance on outside investors for capital.
We supercharge this model by being highly selective about who joins PURE. We look for the most responsible people with the finest built homes. This means lower risk for everyone, which reduces the number of claims and can result in more money back to members.
All of this leads to an alignment of interests and that’s what helps us deliver a great insurance experience and it is why our members love PURE.
Glossary of Terms
PURE members sign this agreement upon joining the membership.
It provides their approval for the attorney-in-fact to act on behalf of the membership in matters related to managing and running the business.
Highly Selective Underwriting
A more responsible membership makes us all stronger.
Our goal is to hand-select those individuals and families who demonstrate care and responsibility when it comes to homeownership and personal risk management. This helps us reduce risk and benefits both PURE and the membership as a whole.
Alignment of Interests
Reducing conflict so that all stakeholders and key constituents thrive.
Alignment between all entities is an essential part of the reciprocal model. SSAs and PURE Gold are the tangible examples of the alignment of interests between PURE and its members.