Mutual Insurance

A Mutual Insurance company is a type of insurance company which is owned by its policy holders instead of being owned by shareholders.  As a partial owner of a mutual insurance company, a policyholder is usually entitled to voting rights in deciding the future of the company.  For example, the board of directors is usually voted on by policyholders of the mutual insurance company.  Policyholders may also receive dividends declared by the company.

With mutual insurance, the money gathered through policyholders’ premiums is collected in a mutual pool of funds that is later used to pay for claims.  If there is a large amount of claims taken out at once, every policyholder might have to pay higher premiums to make up for them.

A major benefit of a mutual insurance company is that they have more freedom in how the business is operated, and how the money is used.  Mutual insurance companies are not profit-based organizations, so there is not pressure on insurance agents to meet quarterly profitability goals like most insurance companies.

There are many mutual insurance companies in the United States, and StateMutual.org has partnered with many of them.  Some of these are listed below:

  • Acacia Life Insurance Company
  • American Family Insurance
  • Amica
  • Auto-Owners Insurance
  • Boston Mutual
  • COUNTRY Financial
  • CUNA Mutual Group
  • FM Global
  • Guardian Life
  • Liberty Mutual
  • Mutual of America
  • Nationwide Mutual Insurance Company
  • New York Life
  • PEMCO
  • SBLI USA Mutual Life
  • Sentry Insurance
  • Shelter Insurance
  • State Farm Insurance
  • State Mutual Insurance Company
  • Union Central Life Insurance Company
  • United Services Automobile Association (USAA)