Mutual Insurance

A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are rebated to policyholders in the form of dividend distributions or reduced future premiums. In contrast, a stock insurance company is owned by investors who have purchased company stock; any profits generated by a stock insurance company are distributed to the investors without necessarily benefiting the policyholders.

The concept of mutual insurance originated in England in the late 17th century to cover losses due to fire. The mutual/casualty insurance industry began in the United States in 1752 when Benjamin Franklin established the Philadelphia Contributionship for the Insurance of Houses From Loss by Fire. Mutual property/casualty insurance companies exist now in nearly every country around the globe.

The global trade association for the industry, the International Cooperative and Mutual Insurance Federation, claims 216 members in 74 countries, in turn representing over 400 insurers. In North America the National Association of Mutual Insurance Companies (NAMIC), founded in 1895, is the sole representative of U.S. and Canadian mutual insurance companies in the areas of advocacy and education.

Read more about Mutual InsuranceMutual Holding Companies

Other articles related to "mutual insurance, insurance, mutual, mutuals":

Amica Mutual Insurance
... Amica Mutual Insurance Company is an American mutual insurance company which sells automobile, homeowners, marine and personal umbrella liability ... Amica is one of the few remaining large-scale mutual insurance firms that consistently ranks highly in JD Power and other consumer satisfaction rankings ...
Ohio National Life Insurance Company
... The Ohio National Life Insurance Company, is a mutual insurance company headquartered in Cincinnati, Ohio ... a stock company in 1909 but converted to mutual company status in 1959 ... In 1998, Ohio National reorganized as a mutual insurance holding company ...
Mutual Organizations - Background
... The primary form of financial business set up as a mutual company in the United States has been mutual insurance ... Some insurance companies are set up as stock companies and then mutualized, their ownership passing to their policy owners ... In mutual insurance companies, what would have been profits are instead rebated to the clients in the form of dividend distributions, reduced future premiums or paid up additions to the policy ...
Mutual Organizations - Modern Mutuality
... types of financial institutions around the world are mutuals, and examples include Asset management companies (most are not mutual) The Vanguard Group - United States TIAA-CREF - United States ... In some markets, mutuals offer very competitive interest rates and fee tariffs on savings and deposit accounts, mortgages and loans ... The members who save and borrow with the mutual ultimately own the business ...
List of Mutual Insurance Companies - United States
... Acacia Life Insurance Company American Family Insurance Ameritas Life Insurance Company Amica Mutual Insurance Company Auto-Owners Insurance CAMICO Mutual Insurance ...

Famous quotes containing the words insurance and/or mutual:

    In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.”
    Emma Goldman (1869–1940)

    Marriage is an act of will that signifies and involves a mutual gift, which unites the spouses and binds them to their eventual souls, with whom they make up a sole family—a domestic church.
    John Paul II [Karol Wojtyla] (b. 1920)