Mutual Insurance Association

A Mutual Insurance Association is a type of insurance company owned by its policyholders rather than external shareholders. Members purchase policies and, in return, share in the company’s profits and decision-making. Because of this structure, the association’s primary goal is to serve its policyholders' interests rather than maximize profits. Any surplus funds are typically reinvested into the organization or returned to members, often as dividends or reduced premiums. This arrangement fosters a cooperative approach, emphasizing mutual benefit and stability for those insured.