Who owns a mutual insurance company?

In a mutual insurance company, ownership resides with the policyholders rather than outsiders or shareholders. This structure means that those who purchase insurance policies have a stake in the company. Because the policyholders contribute to the financial well-being of the company, they often receive benefits such as dividends or reduced premiums, depending on the company's performance. This model is intended to align the interests of the customers with the company's operations, as policyholders are effectively members who have a say in how the company is run.

The nature of mutual insurance companies allows them to prioritize the interests of policyholders over profit maximization, which is typically the primary focus of stockholder-owned entities. This creates a more community-oriented approach to insurance, where the emphasis is on providing adequate coverage and fair prices to those insured.