Who owns mutual policies in an insurance context?

In the context of mutual insurance policies, policyholders are the actual owners of the insurance company. This structure is designed so that the policyholders, who have a direct stake in the company, benefit from its profits in the form of dividends or reduced premiums. Unlike stock insurance companies, which are owned by shareholders who may or may not be policyholders, mutual insurance companies prioritize the interests of the policyholders since they are the ones who have contributed to the company's finances through their premiums.

Additionally, mutual policies allow policyholders to have a say in the governance of the company, typically through voting rights to elect the board of directors. This highlights the element of shared ownership and control, which is a distinguishing characteristic of mutual insurance organizations compared to other ownership structures. This ownership model emphasizes the alignment of interests between the policyholders and the company, focusing on mutual benefits rather than profit maximization for external shareholders.