WHITE PLAINS, NY – March 12, 2010 – Ross Buchmueller, president and chief executive officer with PURE Risk Management LLC, today announced the expansion of Privilege Underwriters Reciprocal Exchange (PURE), a member-owned reciprocal insurer, to offer comprehensive, customized property and casualty insurance coverage to responsible owners of well-built, high value homes in Maryland and Washington, D.C. PURE will also offer automobile, jewelry, art, personal liability and watercraft insurance to qualified individuals and families.
By providing customized coverage options, PURE will offer cost-effective flexibility not easily found in today’s market. Along with significant savings, PURE plans to help its members (policyholders) develop sound practices to protect their homes and valuable property, as it has done in the other states it serves. In Maryland’s coastal areas, PURE will provide valuable capacity without mandatory hurricane deductibles. In addition, PURE will offer owners of condominiums and cooperatives up to $25,000 of coverage for damage caused to an adjacent unit, which will be of particular value in the D.C. area.
“PURE is excited to introduce much-needed competition to the Maryland and D.C. markets. We believe owners of high value homes will appreciate the access to high quality, affordable, customized insurance coverage and personalized service,” said Buchmueller, who founded AIG Private Client Group and served as its president until 2006 when he and his partners established PURE. “Historically, Maryland’s homeowners market in particular has been extremely profitable for insurers, leaving homeowners, especially those of high value homes, at a real disadvantage. Combined with the limited coverage for jewelry typically found within most homeowners policies, and the remarkable profit margins of special jewelry and fine art policies, this profitability shows that there is a clear need for a specialist company that places policyholders ahead of shareholders.”
Buchmueller added: “Our members enjoy having one insurer for their homes, valuables, personal liability, watercraft and automobile insurance. Our generous companion credits in these new markets will likely contribute to better coverage and service, easier administration and significant savings.”
In addition to Maryland and D.C., PURE began offering coverage to successful families in Rhode Island in early 2010. PURE also serves members in New York, New Jersey, Connecticut, Florida and South Carolina and has obtained licenses in Texas, Alabama, Mississippi, North Carolina and Georgia. Since PURE began writing policies in 2007, members have reported average savings of more than $3,200 on their annual insurance costs. PURE also provides significant insurance benefits not offered by other providers by tailoring its policies and products to specifically meet the needs of the high net worth market. PURE’s High Value Homeowners policy includes $50,000 of coverage for jewelry that is lost, misplaced or stolen, at up to $25,000 per item, unlike the industry’s standard $1,000 to $5,000, which is often inadequate coverage for high value homeowners.
“We have partnered with PURE in the Northeast and welcome the opportunity to introduce PURE to the high net worth market in the Mid-Atlantic region,” said Susan Wattenberg, senior vice president of NFP Property and Casualty. Through their affiliation with the Meltzer Group in Bethesda, NFP Property and Casualty is one of the select independent agents representing PURE in Maryland. “PURE’s expanded jewelry coverage, exceptional member service and competitive rates are great additions to the Maryland and D.C. markets.”
As a reciprocal insurance exchange, PURE is member-owned. Members pay a surplus contribution of 10% of their high value homeowners and watercraft premiums and 4% of their premium for all other policies for each of the first five years of membership. PURE and the PURE Group of Insurance Companies serve more than 6,000 members who enjoy the security of approximately $100 million of surplus capital, fueled in part by these contributions. PURE is an admitted insurance company whose products and prices are regulated by the Maryland Insurance Administration and the District of Columbia Department of Insurance, Securities and Banking.
PURE refers to Privilege Underwriters Reciprocal Exchange, a member insurer of the PURE Group of Insurance Companies. Licensed in 13 states, PURE provides coverage for high value homes, automobiles, jewelry, art, personal liability and watercraft to successful individuals and families. PURE is a member-owned reciprocal insurer and is rated “A-” (Excellent) by A.M. Best Company. PURE is committed to helping its members reduce the price of insurance today while controlling the long-term cost of risk. PURE Risk Management LLC serves as the attorney-in-fact for PURE. For more information, visit www.pureinsurance.com.
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Editor’s Notes: Interviews with PURE’s executives, agents and members may be coordinated Copies of the A.M Best Company report are available upon request Average annual savings on homeowners insurance for 900 members reporting prior carrier premium through Feb. 26, 2009. This material is descriptive only. The precise coverage offered is subject to the terms and conditions of the policies issued. The rights and responsibilities of members are subject to the Subscriber’s Agreement and Power of Attorney. Coverage may not be available in all jurisdictions. Actual savings, if any, will vary.