Insurance costs continue to rank among the most pressing challenges for RV parks and campgrounds across Florida and Alabama. Park owners have seen sharp increases, unexpected cancellations, shrinking coverage options, and frustrating audits—often without any claims to justify the disruption. Recognizing this growing crisis, the Florida and Alabama RV Park & Campground Association has been proactively exploring alternative solutions to stabilize costs and restore control to park operators.
At the 2025 Florida and Alabama Outdoor Hospitality Convention & Expo, the association delivered an in-depth session on one of the most promising developments yet: the potential formation of a captive insurance company specifically for our industry.
What Is a Captive Insurance Company?
Simply put, a captive is an insurance company owned and operated by its members. In this model, participating RV park owners collectively form and invest in their own insurance entity. This structure allows members to retain underwriting profits, earn investment income on reserves, and—most importantly—gain far more control over claims handling and policy decisions.
Unlike traditional insurance, where premiums often disappear into a black box of corporate accounting, a captive model aligns costs more closely with actual risk. Participants benefit directly from favorable loss performance and contribute to a shared pool of resources that reflect the specific needs and realities of the outdoor hospitality industry.
Why It Matters
For years, our members have faced skyrocketing premiums and limited options, often without any correlation to claims history or actual risk. Insurance has become less about protection and more about volatility. This captive model flips that equation:
- More Control: Members have a voice in claims handling, risk management protocols, and long-term planning.
- Increased Transparency: You’ll know exactly how premiums are calculated and where your money goes.
- Long-Term Savings: Initial premiums would likely mirror current rates, but participants can expect improved cost predictability and eventual reductions as the captive matures.
- Better Risk Alignment: Captives allow “good operators” to break away from the broader market’s volatility and benefit from their own risk management practices.
- Stability: The captive provides consistent availability of insurance, reducing the annual scramble to secure coverage or manage unexpected carrier exits.
Key Findings from the Feasibility Study
Over the past 18 months, the association commissioned a comprehensive feasibility study, working with industry experts from Strategic Risk Solutions and Starke Agency. Data was gathered from 30 participating parks—about $5 million in combined premiums—and analyzed for viability. Here’s what the study revealed:
- The industry average loss ratio is around 67%, but participating parks showed a dramatically lower 30% loss ratio.
- Even under conservative modeling assumptions, the captive could generate underwriting profits of 8–10%, and potentially 20% or more if association parks continue to outperform the broader market.
- An estimated $60 million in premiums exists across the association, providing strong potential for long-term sustainability.
What’s Next — And How You Can Help
To move forward, we need more data. The goal is to gather loss run reports and current insurance policies from at least 100 parks. These documents will allow us to refine pricing models, engage with potential reinsurance partners, and determine the optimal structure.
We urge all members to take action. Even if you’re happy with your current provider, sharing your data helps the entire industry evaluate this option. This is not an attempt to sell or replace your existing insurance—it’s a research initiative led by and for our members.
To participate, send your five years of loss runs and your current policy declarations to:
Bobby Cornwell
bcornwell@frvca.org
If needed, your insurance agent can obtain loss runs in 24–72 hours. You own this data—it’s yours to request.
A Long-Term Vision
This initiative is about more than savings. It’s about resilience. It’s about reclaiming control over a system that has failed many of us. And it’s about creating a shared solution that reflects the professionalism, responsibility, and community spirit of RV park owners across our region.
Together, we have an opportunity to build something transformative—a safety net built by us, for us.
