Carriers create TRUE to protect customers living in catastrophe prone areas

Homeowners in coastal states like Florida can gain insurance protection from TRUE, a reciprocal insurance company created to protect customers in catastrophe-prone areas.

Orchid Underwriters Agency and Homesite Group created TRUE (Trusted Resource Underwriters Exchange), which begins distributing owner-occupied homeowners insurance and optional bundled coverages including a private flood solution. Select agent partners in Florida will first offer the products, with expansion planned into Gulf, southeast and mid-Atlanta states.

“TRUE is designed to provide superior protection and service to customers in catastrophe-prone areas who are actively involved in protecting their properties,” Michael Lorion, TRUE’s chief executive officer and former chief financial officer of Homesite, told Business Wire.

Orchid is a specialty underwriter of catastrophe-exposed property insurance, and Homesite Group is a national property insurer.

Lorion brings 25 years of experience in the industry to TRUE, including leadership positions at Homesite, Hanover Insurance Group and Travelers Insurance.

He will be joined at TRUE by Stephen Russell as chief underwriting officer. Russell is a former chief actuary of Tower Hill Insurance Group and chief underwriting and actuarial officer of American Modern Insurance Group. Scott Soderstorm will serve as chief operating officers. The three executives bring more than 80 years of experience to the insurance carrier.

Orchid will begin offering TRUE to select agent partners.

“We are blazing our own trail,” Brad Emmons, president and chief executive officer of Orchid Underwriters, told Business Wire. “Given what we are seeing in the market, we are proactively developing new admitted products that meet the needs of risk-conscious customers and agency partners.”

A reciprocal insurance company is an unincorporated association owned by its policyholder-members. They spread risk by pooling money together through the exchange of insurance policies. Delaware-based Trusted Resource Underwriters will serve as attorney-in-fact to manage the exchange.

TRUE looks for customers who want to prevent and limit damages from hurricanes and other severe weather events, plus prevent non-weather losses. These customers look for explicit discounts for shuttered windows, wind-resistant glass, water detection devices and alarm systems.