A mutual insurance company is owned by its _____________.

A mutual insurance company is owned by its policyholders. In this structure, the individuals who purchase insurance policies from the company are also its owners. This ownership model contrasts with stock insurance companies, which are owned by shareholders who may or may not be policyholders. Because policyholders have a stake in the company, they often have a say in its governance and decision-making processes. This means that any profits generated by the mutual insurance company can be returned to policyholders in the form of dividends or lower premiums, enhancing the alignment of interests between the company and those who utilize its services. This mutual ownership structure promotes a focus on policyholder benefits rather than investor profits.