Mutual insurance
A mutual insurance company is an insurance company owned entirely by its policyholders. It is a form of consumers' co-operative. Any profits earned by a mutual insurance company are either retained within the company or 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.
History
The concept of mutual insurance originated in England in the late 17th century to cover losses due to fire.[1] 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.[1] Mutual property/casualty insurance companies exist now in nearly every country around the globe.[2]
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.[3] 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.[4]
Recent developments in the United States
The "mutual holding company" structure was first introduced in Iowa in 1995, and has spread since then.[5] There have been concerns that the mutual holding company conversion is disadvantageous for the owners of the company, the policyholders.[6] The major disadvantage of mutual insurance companies is the difficulty of raising capital.[7]
In the 111th Congress, Carolyn Maloney sponsored a bill that she claimed would have protected mutual holding company owners. The measure, Script error: No such module "Ordinal".-congress/house-bill/3291 H.R. 3291, died in committee.[citation needed]
Mutual holding companies are one way to undergo privatization, also called demutualization.
List of mutual insurance companies
Multinational
Bermuda
Canada
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Denmark
Faroe Islands
- The Faroe Insurance Company (Tryggingarfelagið Føroyar)
Finland
- Pohjantähti Mutual Insurance www.pohjantahti.fi
- Mutual Insurance Company Turva www.turva.fi
France
General 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
- Arbeitsgemeinschaft der Versicherungsvereine auf Gegenseitigkeit e.V.
- VERBAND DER VERSICHERUNGSVEREINE
Japan
- Asahi Mutual Life Insurance Company
- Meiji Yasuda Life Insurance Company
- Nippon Life Insurance Company
- Sumitomo Life Insurance Company
- Fukoku Mutual Life Insurance Company
New Zealand
Philippines
Slovenia
South Africa
Spain
Sweden
- Alecta
- Dina Försäkringar
- Folksam
- Länsförsäkringar
- Skandia
United Kingdom
- 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
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See also
- 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
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- ^ a b Page Module:Citation/CS1/styles.css has no content.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.
- ^ Page Module:Citation/CS1/styles.css has no content."Association of Mutual Insurers and Insurance Cooperatives in Europe". AMICE. Archived from the original on 7 November 2010. Retrieved 24 February 2011.
- ^ Page Module:Citation/CS1/styles.css has no content."ICMIF Members list". Archived from the original on February 3, 2011. Retrieved March 5, 2010.
- ^ Page Module:Citation/CS1/styles.css has no content.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
- ^ Page Module:Citation/CS1/styles.css has no content.Gambrill, David (13 July 2018). "Two 100-year-old mutual insurers vote to amalgamate". Canadian Underwriter. Retrieved 29 March 2025.
- ^ Page Module:Citation/CS1/styles.css has no content."Om LB Forsikring A/S".
- ^ Page Module:Citation/CS1/styles.css has no content."About PPS - Our Heritage | Mutual Financial Services Exclusively for Graduate Professionals". Retrieved 2014-12-17.
{{cite web}}: CS1 maint: deprecated archival service (link) - ^ Page Module:Citation/CS1/styles.css has no content."Overview". Archived from the original on 2014-12-17. Retrieved 2014-12-17.
- ^ Page Module:Citation/CS1/styles.css has no content."AVBOB – Home Page". avbob.co.za. Archived from the original on 2014-12-17. Retrieved 2014-12-17.
- ^ Page Module:Citation/CS1/styles.css has no content."PPS launches new division; glu Mutual". International Cooperative and Mutual Insurance Federation. 29 January 2025.
- ^ Page Module:Citation/CS1/styles.css has no content."Utility Insurance". Aegis Limited.
- ^ Page Module:Citation/CS1/styles.css has no content."About GNY". Greater New York Mutual Insurance Companies.
- ^ Page Module:Citation/CS1/styles.css has no content."Grinnell Mutual". Grinnell Mutual Reinsurance.
- ^ Page Module:Citation/CS1/styles.css has no content."About Guardian | Guardian".
- ^ Page Module:Citation/CS1/styles.css has no content.Insurance, Mennonite Mutual. "Faith-Based & Church Insurance - Agribusiness & Farm Insurance". www.mennonitemutual.com.
- ^ Page Module:Citation/CS1/styles.css has no content."Financials and Reports". Securian Financial.
- ^ Page Module:Citation/CS1/styles.css has no content."Expect more from your work comp partner". SFM Mutual Insurance.
Further reading
- 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
- 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
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