What is the name of the insurance company that is owned by its policyholders?

The insurance company owned by its policyholders is referred to as a mutual insurer. In this structure, policyholders not only purchase insurance but also have a vested interest in the company's success, as they are effectively part owners. This means that any profits generated by the mutual insurer can be returned to the policyholders in the form of dividends or reduced future premiums. Additionally, mutual insurers may prioritize the interests of their members over shareholders, focusing on providing benefits to policyholders rather than maximizing profits for external investors.

In contrast, stock insurers are owned by shareholders who may not necessarily be policyholders, making the focus on profit generation for these shareholders. Cooperative insurers, while community-oriented and sometimes involving members as policyholders, often do not share the same formal structure and ownership model as mutual insurers. Reciprocal insurers involve a group of subscribers who agree to insure each other, and are not owned directly by policyholders in the same sense as mutual insurers. Therefore, mutual insurers clearly stand out as the correct description for companies owned by their policyholders.