• Barry Zuckerkorn@beehaw.org
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      1 year ago

      Yes, any insurance company with “mutual” in the name is basically operated for the benefit of the insured parties. The owners are the policyholders, and any profit the insurance company makes gets paid out to the policyholders as dividends essentially partially offsetting the cost of their ongoing premiums.

      Turns out, though, plenty of insurance companies run this way can still enrich their executives at the expense of policyholders and owners, so you still need to keep an eye out for self-interested individuals (or incompetence that costs everyone money), even if the company itself isn’t profit-driven.