eMaxx Launches Policyholder-Owned Insurer to Combat Rising Costs

By Alexander Harris

TAMPA, FL – January 13, 2026 – In a direct response to the turbulent commercial insurance market, specialty firm eMaxx has launched a new policyholder-owned insurer in Arkansas, aiming to give businesses more control over their risk and costs. The newly formed eMaxx Reciprocal Insurance Exchange is structured so that its members are also its owners, a model designed to counter escalating premiums and the industry-wide challenge of “social inflation.”

Owned by its policyholder subscribers, the Reciprocal will provide commercial property and casualty insurance and reinsurance. The move represents a significant expansion of eMaxx’s alternative risk platform, which provides solutions for businesses seeking refuge from the volatility of the traditional insurance market. This new entity will also support eCaptiv, eMaxx’s existing sponsored captive insurance company, with its members automatically becoming subscribers of the new exchange.

“The launch of the eMaxx Reciprocal Insurance Exchange marks an important step in expanding our alternative risk platform,” said Brian McCarthy, CEO and President of eMaxx Assurance Group of Companies, Inc. “By aligning policyholders as Subscribers and Owners, the Reciprocal supports disciplined underwriting, strong governance, and a variable cost insurance model designed to address social inflation and rising loss costs.”

A Return to Member-Owned Insurance

The structure chosen by eMaxx—a reciprocal insurance exchange—is a departure from the conventional model where a company is owned by outside shareholders. In a reciprocal exchange, the policyholders themselves are the insurers. They pool their capital and agree to mutually cover each other’s losses. This unincorporated association is managed not by corporate officers, but by a separate entity known as an Attorney-in-Fact (AIF). In this case, eMaxx Insurance Services, LLC will serve in that capacity, handling day-to-day operations like underwriting and claims processing.

This member-owned framework is not new, but it is gaining renewed attention as a powerful tool for niche industries and proactive businesses. Because reciprocals do not need to generate profits for external shareholders, any surplus funds can be returned to the policyholder-owners through dividends or used to reduce future premiums. This creates a powerful alignment of interests: the better the group performs in managing risk, the more everyone benefits financially. It transforms insurance from a simple transaction into a collaborative partnership.

However, this ownership comes with shared responsibility. If the exchange experiences higher-than-expected losses, the members may be required to contribute additional capital. This inherent risk is the driving force behind the stringent membership requirements and disciplined approach that characterize modern reciprocal exchanges.

Waging a Tech-Driven War on Inflation

The timing of eMaxx's launch is strategic, targeting a major pain point for the property and casualty sector: social inflation. This term describes the rising cost of insurance claims that outpaces general economic inflation, driven by factors like larger jury awards in liability cases, increased litigation, and a growing anti-corporate sentiment. For businesses, especially those with commercial vehicle fleets, social inflation has translated into skyrocketing premiums and, in some cases, difficulty finding coverage at all.

eMaxx's strategy is to combat this trend not just with a new corporate structure, but with a mandatory suite of technology and safety protocols. Participation in the program is conditional on a member’s commitment to a rigorous loss-prevention program. This isn’t a suggestion; it’s a requirement.

Subscribers must implement approved cloud-based dash cameras and telematics across their vehicle fleets. These systems monitor driving behavior, such as speed, acceleration, and harsh braking, providing a wealth of data that can be used to coach drivers and prevent accidents before they happen. The requirements go further, mandating driver behavior technology that may include inward-facing cameras or cell phone blocking applications to curb distracted driving.

Research has consistently shown that these technologies are highly effective. Telematics and AI-powered alerts can reduce crash frequency by 20% to 30%, while dash cameras provide indisputable evidence that can exonerate drivers in non-fault accidents and protect companies from fraudulent claims. By making this technology non-negotiable, the Reciprocal aims to create a pool of best-in-class risks, reducing overall claims frequency and severity for the entire group.

The High Bar for Entry

The commitment to safety extends beyond technology. Members of the eMaxx program must adhere to a comprehensive set of operational standards. These include ongoing motor vehicle record monitoring for all drivers, participation in quarterly mandatory safety training, and the maintenance of written progressive disciplinary policies for safety violations.

Furthermore, members must consent to share their telematics and safety data through approved platforms, creating a transparent ecosystem where risk can be collectively monitored and managed. Participation in an annual Risk Management Summit is also required, along with the implementation of light-duty return-to-work programs to manage the costs associated with workplace injuries.

This disciplined framework is what gives the model its strength. “The eMaxx Reciprocal Insurance Exchange represents the next step forward for Members committed to strong governance, accountability, and loss prevention,” stated Michael Penza, President of Samuel Coraluzzo and Chairman of the Subscribers’ Advisory Committee for the new exchange. “It provides a disciplined structure that aligns long-term participation with shared responsibility.”

By setting a high bar for entry, eMaxx is curating a membership of businesses that are philosophically aligned on the importance of proactive risk management. The model effectively filters out companies unwilling to invest in safety, creating a more stable and predictable insurance environment for those who are.

The Strategic Choice of Domicile

The decision to domicile the Reciprocal in Arkansas places it within a state that is actively working to be a competitive home for alternative risk transfer vehicles. While not as large as traditional captive hubs like Vermont or Delaware, states like Arkansas are increasingly creating favorable regulatory environments to attract insurance innovation and capital. By providing a supportive regulatory framework for entities like reciprocal exchanges and captive insurers, states can stimulate economic activity and offer businesses more sophisticated tools for managing risk.

The launch of the eMaxx Reciprocal Insurance Exchange is more than just the formation of a new insurer. It is a clear signal of a broader market shift, where empowered businesses are moving away from the traditional, often reactive, insurance model and embracing structures that reward discipline, leverage technology, and place control directly into the hands of policyholders.