What is the main purpose of a fraternal insurer?

The primary purpose of a fraternal insurer is to provide insurance for members who share common interests or affiliations, such as those linked by religion, culture, or other community bonds. Unlike traditional stock or mutual insurance companies that focus on generating profit for shareholders or policyholders, fraternal insurers operate on a not-for-profit basis. They prioritize the needs of their members, offering tailored coverage and benefits that align with the values and interests of the group.

Fraternal insurers often engage in community service and social activities that foster a sense of belonging among members, further distinguishing them from other types of insurers. This sense of community is an essential aspect of their operation, supporting the emotional and financial well-being of their members rather than strictly focusing on financial returns or competitive pricing. By providing coverage specifically for those who share similar values or backgrounds, fraternal insurers create a unique bond among their clients, which is the cornerstone of their purpose.