How are mutual insurance companies primarily owned?

Mutual insurance companies are primarily owned by their policyholders. This structure implies that individuals who purchase insurance from the company are also members and have a stake in the organization. Each policyholder typically has voting rights to influence the governance of the company, such as electing the board of directors. This ownership model emphasizes the principle that the primary goal of a mutual insurance company is to serve the interests of its members rather than generating profit for shareholders, as is the case with stock insurance companies. The alignment of interests is designed to ensure that profits are often returned to policyholders in the form of dividends or reduced premiums, reinforcing the mutual nature of the organization.