Which type of insurer is owned by its policyholders?

A mutual insurer is owned by its policyholders, making it distinct from other types of insurers. In a mutual insurance company, the policyholders effectively are the owners of the company, and any surplus earnings may be distributed to them in the form of dividends or may be reinvested back into the company for their benefit. This ownership structure aligns the interests of the policyholders with the operational and financial decisions of the insurer, as their satisfaction can directly affect the success and sustainability of the organization.

In contrast, a stock insurer is owned by shareholders who may or may not be policyholders, meaning their primary interest lies in the profitability of the stock rather than the welfare of the policyholders. A reciprocal insurer, while also a mutual concept, operates on a different basis—members exchange insurance contracts and share risk without traditional ownership structures. The term "probationary insurer" does not refer to a recognized type of insurer in the context of ownership or structure. Thus, the identifying characteristic of a mutual insurer is its direct ownership by the policyholders, reinforcing the relationship and mutual benefit derived from the insurance services provided.