Who owns a Mutual Insurer?

A mutual insurer is owned by its policyholders. This ownership structure allows policyholders to have a say in the operations and management of the insurer, commonly through voting rights at the company's meetings. Since the mutual insurer’s primary goal is to provide insurance coverage to its members rather than to generate profits for stockholders, the interests of policyholders are prioritized, often resulting in lower premiums and better service.

This system is fundamentally different from a stock insurer, which is owned by shareholders seeking a return on their investment. As such, mutual insurers operate on a principle of mutual benefit rather than profit maximization for external parties. The policyholders benefit not only through potential dividends but also through a shared interest in the insurer's success, reinforcing the mutual insurer's cooperative nature.