A mutual insurance company is an insurance company that is people centric, jointly owned and democratically controlled by its policyholders. It is a form of consumers' co-operative that as of 2013 accounted for 27.3% of the global insurance market helping protect 915 Million policy holders globally. From a financial perspective, surpluses that are experienced by the mutual are either retained by the company for operational needs, shared among policy holders in the form of dividend distributions or reduced future premium. Mutual Insurance differs from a stock based or investor owned insurance company which is owned by investors who have purchased company stock. Profits (rather than surpluses) in a stock company are either retained by the company or distributed to the investors without any guaranteed benefits to the policyholders.
Governance
editFrom a governance perspective, a mutual insurance company, being jointly owned and democratically controlled by its policy holders, is ultimately governed by the policy holders that it serves. Policyholders, as joint owners of the enterprise, are given the opportunity to participate in the selection of the board of directors in various ways. In a direct form of participation, policy holders vote and directly elect the board members. In an indirect form of participation, member representatives are elected by the policyholders and it is those member representatives that make the eventual decision on the board of directors.[1]
History
editThe concept of mutual insurance originated in England in the late 17th century to cover losses due to fire.[2] 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.[2] Mutual property/casualty insurance companies exist now in nearly every country around the globe.[3]
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.[4] 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.[5]
Recent developments in the United States
editThe "mutual holding company" structure was first introduced in Iowa in 1995, and has spread since then.[6] There have been concerns that the mutual holding company conversion is disadvantageous for the owners of the company, the policyholders.[7] The major disadvantage of mutual insurance companies is the difficulty of raising capital.[8]
In the 111th Congress, Carolyn Maloney sponsored a bill that she claimed would have protected mutual holding company owners. The measure, H.R. 3291, died in committee.[citation needed]
Mutual holding companies are one way to undergo privatization, also called demutualization.
Digital Transformation in Mutual Insurance: Data Co-operatives and the Digital Commons
editA data co-operative is a member-owned and democratically controlled organization that enables individuals or organizations to collectively manage, share, and use data. In these co-operatives, members retain control over their own data, but pool it with others mutual benefit. The co-operative enterprise facilitates key activities such as data collection, processing, analysis and sharing with members. [9][relevant?]
The digital commons refer to a shared pool of digital resources including data, knowledge, software and content that is collectively created, managed and governed by a community. [9][relevant?]
The mutual insurance environment is embracing[tone] digital solutions by employing the concepts of data co-operatives and digital commons. An example of this is the establishment of Drive Mutual in Ontario, Canada. Drive Mutual is a telematics app that was created for and managed mutual insurers in Ontario. The telematics application provides insurers with data about the risks they insure and helps to price the insurance product appropriately based on the driving habits of the policy holders. [10][better source needed]
List of mutual insurance companies
editMultinational
editBermuda
editCanada
edit- Algoma Mutual Insurance Company
- Amherst Island Mutual Insurance Company
- Antigonish Farmers' Mutual Insurance Company
- Ayr Farmers Mutual Insurance Company
- Axiom Mutual Insurance Company
- Bay of Quinte Mutual Insurance Company
- Beneva insurance
- Bertie & Clinton Mutual Insurance Company
- Brant Mutual Insurance Company
- Caradoc Delaware Mutual Insurance Company
- Carleton Mutual Insurance Company
- Cayuga Mutual Insurance Company
- Clare Mutual Insurance Company
- The Commonwell Mutual Insurance Group
- Dufferin Mutual Insurance Company
- Dumfries Mutual Insurance Company
- Edge Mutual Insurance Company
- The Equitable Life Insurance Company of Canada
- Erie Mutual Insurance Company
- Fundy Mutual Insurance Company
- Germania Mutual Insurance Company
- Germania Mutual Insurance Company Saskatchewan
- Gore Mutual Insurance Company
- Grenville Mutual Insurance Company
- Halwell Mutual Insurance Company
- Heartland Farm Mutual (formerly North Waterloo & Oxford)
- Howard Mutual Insurance Company
- Howick Mutual Insurance Company
- HTM Insurance Company
- Kent & Essex Mutual Insurance Company
- The Kings Mutual Insurance Company
- Lambton Mutual Insurance Company
- L&A Mutual Insurance Company
- MAX Canada Insurance Company
- McKillop Mutual Insurance Company
- My Mutual Insurance
- Mennonite Mutual Insurance Company (Alberta) Ltd.
- Middlesex Mutual Insurance Company
- The Mutual Fire Insurance Company of British Columbia
- North Blenheim Mutual Insurance Company
- North Kent Mutual Insurance Company
- Nova Mutual Insurance Company (created from the merger of Norfolk Mutual Insurance Company and Wabisa Mutual Insurance Company)[11]
- Peel Mutual Insurance Company
- PEI Mutual Insurance Company
- Pictou County Farmers' Mutual Insurance Company
- Portage la Prairie Mutual Insurance Company
- Promutuel Mutual Insurance Company
- Red River Mutual Insurance
- Saskatchewan Mutual Insurance Company
- SouthEastern Mutual Insurance Company
- South Easthope Mutual Insurance Company
- Stanley Mutual Insurance Company
- Townsend Mutual Insurance Company
- Tradition Mutual Insurance Company
- Trillium Mutual Insurance Company
- United General Insurance Corporation
- Usborne & Hibbert Mutual Insurance Company
- Wawanesa Mutual Insurance Company
- West Elgin Mutual Insurance Compa
- Westminster Mutual Insurance Company
- West Wawanosh Mutual Insurance Company
- Yarmouth Mutual Insurance Company
Denmark
editFaroe Islands
edit- The Faroe Insurance Company (Tryggingarfelagið Føroyar)
Finland
edit- Pohjantähti Mutual Insurance www.pohjantahti.fi
- Mutual Insurance Company Turva www.turva.fi
France
editGeneral mutual insurance companies
Health insurance companies
- ACORIS Mutuelles
- Almutra
- Avenir Santé Mutuelle
- Choralis Mutuelle le libre choix
- Complévie
- CMIP
- EMOA Mutuelle du Var
- Groupe Victor HUGO
- La Maison du Fonctionnaire
- La Mutuelle Catalane
- La Mutuelle des Remparts
- MBA Mutuelle
- MCEN
- M Comme Mutuelle
- MFCF
- Mutuelle Entrain
- Mutuelle Générale d'Avignon
- Mutuelle Générale des Cheminots
- MIPSS Auvergne
- MOAT
- Mutuelle Matra Hachette
- Mutuelle du Pays Martégal
- Mutuelle du Pays de Vaucluse
- Mutuelle du Rempart
- Mutuelle SEPR
- Mutuelle SERAMM
- Mutuelles du Soleil
- Precocia
- Sereina Mutuelle
Germany
editJapan
editNew Zealand
editPhilippines
editSlovenia
editSouth Africa
editSpain
editSweden
edit- Alecta
- Dina Försäkringar
- Folksam
- Länsförsäkringar
- Skandia
United Kingdom
edit- Shepherds Friendly Society
- Education Mutual
- The Equitable Life Assurance Society
- Exeter Friendly Society
- NFU Mutual
- Engage Mutual Assurance
- Health Shield
- Royal London Group
- Together Mutual Insurance
- The Military Mutual
- Scottish Friendly
- UIA Mutual
- Liverpool Victoria
United States
edit- Acacia Life Insurance Company
- Acuity Insurance
- AEGIS Limited[17]
- American Family Insurance
- Ameritas Life Insurance Company
- Amica Mutual Insurance Company
- Assurity Life Insurance Company
- Auto-Owners Insurance
- Some Blue Cross Blue Shield Association affiliated companies (except Elevance Health, formerly known as Anthem).
- Central Mutual Insurance Company
- Commonwealth Mutual Insurance Company of America
- Connecticut Mutual Life Insurance
- Co-operative Insurance Companies
- COUNTRY Financial
- CUNA Mutual Group
- Employers Mutual Casualty Company
- Farmers Mutual Hail Insurance Company of Iowa
- FM Global (Factory Mutual Insurance Company)
- Grange Insurance Association
- Georgia Farm Bureau Federation
- Grange Mutual Casualty Company
- Greater New York Mutual Insurance Companies[18]
- Grinnell Mutual[19]
- Guardian Life[20]
- Health Care Service Corporation (Blue Cross Blue Shield of Illinois, Montana, New Mexico, Oklahoma and Texas)
- Lafayette Life
- Liberty Mutual
- Maple Valley Mutual Insurance
- Massachusetts Mutual Life Insurance Company
- Medical Mutual of Ohio
- Mennonite Mutual Insurance Company[21]
- Minnesota Lawyers Mutual Insurance Company
- Minnesota Mutual Companies, Inc.[22]
- Missouri Employers Mutual
- Mutual Assurance Society of Virginia
- Mutual Benefit Life Insurance
- Mutual of America
- Mutual of Omaha
- National Life Group
- Nationwide Mutual Insurance Company
- New England Life
- NYCM Insurance
- New York Life
- NJM Insurance Group
- The Norfolk & Dedham Group
- Noridian Mutual Insurance Company
- Northwestern Mutual
- Ohio National Life Insurance Company
- OneAmerica Financial Partners, Inc.
- Pacific Life Insurance Company
- PEMCO
- Penn Mutual
- Penn National Insurance
- Physicians Mutual
- Pure
- Sawgrass Mutual Insurance Company
- Security Mutual Life Insurance Company of New York
- Sentry Insurance
- SFM Mutual Insurance Companies[23]
- Shelter Insurance
- State Farm Insurance
- UNIFI Companies
- Union Central Life Insurance Company
- West Bend Mutual Insurance Company
- Wisconsin Mutual Insurance Company
- Western Mutual Insurance Group
See also
edit- Mutual aid
- Protection and indemnity insurance
- Reciprocal inter-insurance exchange: a type of insurance company which, similar to a mutual, is not owned by stockholders.
References
edit- ↑ "A practical guide to understanding mutual insurance" (PDF). June 1, 2026.
- 1 2 Wright, Janet; Virginia Wadsley; Janice Artandi (1994). The History of the National Association of Mutual Insurance Companies, A Century of Commitment, 1895–1995. Indianapolis, IN: National Association of Mutual Insurance Companies. pp. 1–5.
- ↑ "Association of Mutual Insurers and Insurance Cooperatives in Europe". AMICE. Archived from the original on 7 November 2010. Retrieved 24 February 2011.
- ↑ "ICMIF Members list". Archived from the original on February 3, 2011. Retrieved March 5, 2010.
- ↑ Wright, Janet; Virginia Wadsley; Janice Artandi (1994). The History of the National Association of Mutual Insurance Companies, A Century of Commitment, 1895–1995. Indianapolis, IN: National Association of Mutual Insurance Companies. p. 21.
- ↑ Banstetter et al. (1997). The Mutual Holding Company: A New Structural Option. The Association of Life Insurance Counsel. pp 65-140
- ↑ Rambeck R. (2001). Mutual Holding Company: A Shell Game Without the Pea. Insurance Journal.
- ↑ What demutualization means for policyholders. Insure.com. January 28, 2003
- 1 2 Bühler, M; Calzada, I; Cane, I; Jelinek, T; Kapoor, A; Mannan, M; Mehta, S; Mookerje, V; Nübel, K; Pentland, A; Scholz, T; Siddarth, D; Tait, J; Vaitla, B; Zhu, J (2023). "Unlocking the Power of Digital Commons: Data Cooperatives as a Pathway for Data Sovereign, Innovative and Equitable Digital Communities". Digital. 3 (3): 146–171.
- ↑ "About Us | DriveMutual". drivemutual.com. Retrieved 2026-06-05.
- ↑ Gambrill, David (13 July 2018). "Two 100-year-old mutual insurers vote to amalgamate". Canadian Underwriter. Retrieved 29 March 2025.
- ↑ "Om LB Forsikring A/S".
- ↑ "About PPS - Our Heritage | Mutual Financial Services Exclusively for Graduate Professionals". Retrieved 2014-12-17.
{{cite web}}: CS1 maint: deprecated archival service (link) - ↑ "Overview". Archived from the original on 2014-12-17. Retrieved 2014-12-17.
- ↑ "AVBOB – Home Page". avbob.co.za. Archived from the original on 2014-12-17. Retrieved 2014-12-17.
- ↑ "PPS launches new division; glu Mutual". International Cooperative and Mutual Insurance Federation. 29 January 2025.
- ↑ "Utility Insurance". Aegis Limited.
- ↑ "About GNY". Greater New York Mutual Insurance Companies.
- ↑ "Grinnell Mutual". Grinnell Mutual Reinsurance.
- ↑ "About Guardian | Guardian".
- ↑ Insurance, Mennonite Mutual. "Faith-Based & Church Insurance - Agribusiness & Farm Insurance". www.mennonitemutual.com.
- ↑ "Financials and Reports". Securian Financial.
- ↑ "Expect more from your work comp partner". SFM Mutual Insurance.
Further reading
edit- Emery, Herbert, and George Emery. A Young Man’s Benefit: The Independent Order of Odd Fellows And Sickness Insurance in the United States and Canada, 1860–1929 (McGill-Queen's University Press, 1999).
- Van Leeuwen, Marco H.D. Mutual Insurance, 1550–2015: From Guild Welfare and Friendly Societies to Contemporary Micro-Insurers (Palgrave Macmillan, 2016) 321 pp. online review, A standard scholarly history
External links
edit- NAMIC – National Association of Mutual Insurance Companies
- ICMIF – International Cooperative and Mutual Insurance Federation
- AFM – Association of Financial Mutuals (UK)
- University of Wisconsin Center for Cooperatives: Research on the Economic Impact of Cooperatives. Economic Impacts of Cooperatives › Financial Services > Mutual Insurance