The Free Market Business Forum is a new reciprocal indemnity hub (or exchange), that is owned by its subscribers - the businesses and property owners - it is managed by an attorney-in-fact. It was born out of the need for a sophisticated solution to deal with modern-day risks and political threats.
This is not the first time in recent history that business owners have had to take matters into their own hands. As early as 1881 New York merchants frustrated with their insurance companies decided to pool their resources and self-insure instead. The self-insurance vehicle they ultimately created became known as a Reciprocal Inter-Insurance Exchange. This structure provides the legal framework for three of America's biggest companies. The United Services Automobile Association (USAA) was established in 1922 by a few US Army Officers because insurance companies refused to insure service men and women; with assets exceeding US$ 155 billion it services the insurance needs of US Armed Forces service men and women. The Farmers Insurance Group was also founded in 1922 to serve the insurance needs of farmers. With over 60 million members the American Automobile Association (AAA) is another example of a very successful reciprocal inter-insurance exchange.
The Free Market Business Forum has been established to serve business owners and entrepreneurs who supports our founding principles of a free market economy, private ownership of property, and freedom of expression - and agrees to the forum's code of conduct. The forum was established in the wake of the 2020 pandemic to redress the threats emerging from the so-called Great Reset. A significant aspect of said threats is the apparent inability or unwillingness of established insurance providers to honor their all-hazards and/or business interruption obligation to businesses clients.
The Free Market Business Forum has opted for the basic reciprocal structure as it is best suited to support our vision and strategy. Our aim is to help our members be successful, which includes the management of risk. This form of insurance remains but one component which can be used to fill the gaps that remain after applying all other risk hedging measures available.
A reciprocal allows subscribers to spread risk around by exchanging indemnity contracts among themselves, through the medium of a common attorney-in-fact. The attorney-in-fact (AIF) holds a power of attorney for the reciprocal, and is tasked with its administration and running day-to-day operations. The AIF is thus owned by the reciprocal (in other words, the member-owned Free Market Business Forum), and is governed by a board of governors that is responsible for overseeing and monitoring the attorney-in-fact, including approving rates and investments. Capital is provided by the subscribing members' current payments which are called "premium deposits".
The Attorney in Fact (AIF) is to be incorporated in Estonia. The AIF appoints regional (in-country) underwriters to service the needs of members in their locale. These underwriters will be carefully selected from the best in each region, who are most closely aligned with the vision of the Free Market Business Forum. Underwriters employ Risk Inspectors who work closely with account managers.
In a standard insurance scheme, regular premiums payable are based on the assessed risk as determined by the insurer. In the case of reciprocal inter-insurance, the member deposits are also variable according to the insured member’s risk profile. As the member progresses with strategic re-engineering of its enterprise, the assessed risk and therefore the required regular member deposits will also be adjusted. Further information will be provided upon completion of the forum's operations plan - but prior to launch - once approved by the Board of Governors.