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What is a reciprocal exchange?

A group of members who agree to share one another's risks.

A reciprocal insurance exchange is a group of members who agree to share each other's risks through a shared arrangement — closer in spirit to cooperative mutual protection than to buying a product from a company.

Reciprocals are most relevant to commercial property & casualty and professional liability — the longer-game lanes. They are heavily regulated and capital-intensive, which is exactly why they are gated far behind the demand-gathering stage.

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Sila is not currently an insurance company or reciprocal insurance exchange. Joining the founding network does not provide insurance coverage or benefits. Any future products are subject to legal, actuarial, Shariah, carrier, and regulatory approvals.

What is a reciprocal exchange? — Sila