ARECA Insurance Exchange enters consulting services agreement with Federated Rural Electric Insurance Exchange
On May 1, 2014, ARECA Insurance Exchange entered into a three-year consulting services agreement with Federated Rural Electric Insurance Exchange.
ARECA Insurance Exchange is an Alaska-domiciled reciprocal exchange insurance company that insures Alaska electric and telephone cooperatives. ARECA now has access to an extensive network of subscriber services and staff expertise provided by Federated Rural Electric Insurance Exchange, a Kansas-domiciled reciprocal exchange insurance company that insures electric cooperatives and telephone systems in the Lower 48 states.
ARECA is a multi-line insurance carrier with an A.M. Best rating of A-, the highest achievable rating for a company its size. It will continue its 30-year history of providing Alaska-based underwriting services, loss control, and claims administration for its subscribers.
Federated, which carries an A rating from A.M. Best, is a larger insurance exchange that will provide ARECA with consultation, resources and support in the areas of underwriting, claims, loss control, and financial and regulatory reporting. In addition, ARECA Insurance Exchange will now use Lenexa Services, Inc. (LSI), a wholly owned subsidiary of Federated, as its reinsurance intermediary.
“ARECA Insurance Exchange is excited about this new arrangement with Federated,” said Marilyn Leland, Executive Vice President of ARECA Insurance Exchange. “Both insurance companies have similar business models, expertise in insuring electric and telephone utilities, and a commitment to providing exceptional service at competitive premiums for our member-subscribers. This truly is a win-win situation.”
“This is an exciting milestone in Federated’s history,” said Phil Irwin, President and CEO of Federated Rural Electric Insurance Exchange. “I cannot think of a better way to celebrate Federated’s 55th anniversary than through this genuine example of the sixth cooperative principle, Cooperation among Cooperatives. Federated’s expertise and commitment to member service truly complement the strengths of the ARECA Insurance Exchange. We are excited that this agreement will allow ARECA to bring even more value to their subscribers.”
As part of the consulting agreement, ARECA insureds will receive several service enhancements including access to Federated’s subscribers-only website with a comprehensive suite of safety training materials designed for electric and telephone utilities.
ARECA Insurance Exchange - In 1983, swings in the insurance market left many Alaska businesses scrambling for a way to cover their risk as companies limited their offerings. Alaska Power Association members formed ARECA Insurance Exchange to provide access to critical insurance coverage at reasonable rates. Twenty Alaska utilities are members of ARECA. The policyholders are also the owners of the insurance exchange, and may receive a share of the company's annual underwriting and investment profits.
Federated Rural Electric Insurance Exchange - Formed in 1957 by members of the Wisconsin Electric Cooperative Job Training and Safety Committee, Federated Rural Electric Insurance Exchange insures 792 electric cooperative and telephone systems in 42 states.