Tower Hill’s newest risk-bearing entity, Tower Hill Insurance Exchange ("the Exchange"), is considered a reciprocal insurer because the policyholders (aka members) will insure each other and share in the underwriting profits generated via subscriber savings accounts.
Whereas conventional carriers are owned by shareholders or private investors, reciprocal insurance companies are owned by their members. Some of the best known and popular reciprocals are USAA, Farmers Insurance, Privilege Underwriters Reciprocal Exchange (PURE), and Erie Insurance.