Mutual Insurance Company

A mutual insurance company is a member-owned type of insurance company. Instead of shareholders running the organization for profit, policyholders have a say in the company’s governance and share in profits and benefits. The company reinvests surplus profits or distributes them to policyholders as dividends. Unlike for-profit insurance companies, a mutual insurance company gives policyholders a voice and focuses on long-term financial stability instead of stakeholder returns.

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