Mutual insurance

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A mutual insurance company is an insurance company owned entirely by its policyholders. 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.

Video Mutual insurance

History

The concept of mutual insurance originated in England in the late 17th century to cover losses due to fire. 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. Mutual property/casualty insurance companies exist now in nearly every country around the globe.

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. 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.

Maps Mutual insurance

Recent developments in the U.S.

The "mutual holding company" structure was first introduced in Iowa in 1995, and has spread since then. There have been concerns that the mutual holding company conversion is disadvantageous for the owners of the company, the policyholders. The major disadvantage of mutual insurance companies is the difficulty of raising capital.

In the 111th Congress, Carolyn Maloney sponsored a bill that she claimed would have protected mutual holding company owners. The measure, H.R. 3291, died in committee.

Mutual holding companies are one way to undergo privatization, also called demutualization.

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List of mutual insurance companies

Multinational

• AIM - Association Internationale de la Mutualité

Bermuda

• Oil Insurance Limited

Canada

Denmark

• Tryg (owned 60% by the mutual company Tryghedsgruppen)

Faroe Islands

• The Faroe Insurance Company (Tryggingarfelagið Føroyar)

Finland

• Pohjantähti Mutual Insurance www.pohjantahti.fi

France

General Mutual insurance companies

• MACIF
• MAIF
• Matmut
• MAAF
• MMA
• SMACL
• Thélem Assurances

Health insurance companies

• MGEN
• Mutualia
• Mutuelle Générale
• Harmonie Mutuelle*
• MNT

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

• FMG Insurance

Philippines

• Insular Life

Slovenia

• Vzajemna

South Africa

• PPS (Professional Provident Society)
• Iemas
• AVBOB

Spain

• Mutua Madrileña

Sweden

• Alecta
• Dina Försäkringar
• Folksam
• Länsförsäkringar
• Skandia

United Kingdom

• Shepherds Friendly Society
• The Equitable Life Assurance Society
• NFU Mutual
• Engage Mutual Assurance
• Liverpool Victoria
• Health Shield
• Royal London Group
• Together Mutual Insurance

United States

• Acacia Life Insurance Company
• Acuity Insurance
• American Family Insurance
• Ameritas Life Insurance Company
• Amica Mutual Insurance Company
• Assurity Life Insurance Company
• Auto-Owners Insurance
• Central Mutual Insurance Company
• Commonwealth Mutual Insurance Company of America
• Connecticut Mutual Life Insurance
• Co-operative Insurance Companies
• COUNTRY Financial
• CUNA Mutual Group
• Employers Mutual Casualty Company
• FM Global
• Grange Mutual Casualty Company
• Grinnell Mutual
• Guardian Life
• Health Care Service Corporation (Blue Cross Blue Shield of Illinois, Michigan, New Mexico, Oklahoma and Texas)
• Horace Mann Educators Corporation
• Lafayette Life
• Liberty Mutual
• Maple Valley Mutual Insurance
• Massachusetts Mutual Life Insurance Company
• Medical Mutual of Ohio
• Minnesota Mutual Companies, Inc.
• Missouri Employers Mutual
• Mors Mutual Insurance
• Mutual Benefit Life Insurance
• Mutual of America
• Mutual of Omaha
• National Life Group
• Nationwide Mutual Insurance Company
• New England Life
• New York Central Mutual Fire Insurance Company
• New York Life
• The Norfolk & Dedham Group
• Noridian Mutual Insurance Company
• Northwestern Mutual
• Ohio National Life Insurance Company
• OneAmerica Financial Partners, Inc.
• Pacific Life Insurance Company
• PEMCO
• Penn Mutual
• Pure
• Sawgrass Mutual Insurance Company
• Security Mutual Life Insurance Company of New York
• Sentry Insurance
• SFM Mutual Insurance Companies
• Shelter Insurance
• State Farm Insurance
• State Mutual Insurance Company
• UNIFI Companies
• Union Central Life Insurance Company
• USAA
• Wisconsin Mutual Insurance Company
• Western Mutual Insurance Group

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References

src: www.pvualumni.org

External links

• NAMIC - National Association of Mutual Insurance Companies
• ICMIF - International Cooperative and Mutual Insurance Federation
• AFM - Association of Financial Mutuals (UK)
• Reorganization Status of Mutual Life Insurance Companies (USA)
• University of Wisconsin Center for Cooperatives: Research on the Economic Impact of Cooperatives. Economic Impacts of Cooperatives > Financial Services > Mutual Insurance

Source of article : Wikipedia