What is a mutual insurance company owned by?

A mutual insurance company is owned by its policyholders. This structure means that the individuals who purchase insurance policies from the company also have a stake in its operations and can benefit from its success. In a mutual insurance company, decision-making is typically influenced by the interests and needs of the policyholders, who may receive dividends or reduced premiums based on the company's performance.

This distinguishes mutual insurance companies from stock insurance companies, which are owned by shareholders who may not necessarily be policyholders. As such, the focus of a mutual company is on the welfare of its members, aligning the interests of the insured with the organization's goals. This ownership model helps ensure that policyholders have a voice in how the company is run and how profits are distributed, emphasizing a community-oriented approach to insurance.