A mutual insurance company is owned by whom?

A mutual insurance company is owned by its policyholders. This means that individuals who purchase policies from the company have a stake in the organization, allowing them to influence its operations and decisions. Since the policyholders are the ones who provide the funds through their premiums, they essentially share in the profits and losses of the company. This model is distinct from stock companies, where the ownership is held by stockholders who invest capital and may not be policyholders themselves. In a mutual insurance company, decisions regarding dividends, member benefits, and policyholder services are typically aimed at serving the members rather than maximizing profit for external investors. This structure fosters a relationship between the insurer and its clients, as both parties benefit when the company succeeds.