What type of insurance company is owned by its policyholders?

A mutual insurance company is owned by its policyholders, which distinguishes it from other types of insurance companies such as stock or fraternal organizations. In a mutual insurance company, policyholders have a direct stake in the company and may receive dividends or reductions in premiums when the company performs well financially. This structure emphasizes the idea of customer ownership, as the policyholders are effectively the shareholders of the company. In contrast, stock insurance companies are owned by shareholders who may not be policyholders, while government insurance typically refers to programs that provide coverage as part of a broader governmental function, rather than being owned by individuals. Fraternal insurance is often associated with organizations that provide insurance to members with social or affiliate ties, rather than ownership in the traditional sense associated with mutual companies.