A mutual insurance company is an insurer that provides collective self insurance to its Members. It has no shareholders and is owned and controlled by its Members.

By pooling their risks together in a mutual, Members take control of the extent of their insurance cover and obtain their insurance cover at cost.

Mutuals do not have external shareholders taking profits out of the business in the form of dividends. Any surplus produced by the operating activities of a mutual is applied for the sole benefit of its Members.

The executive management of mutual insurance companies is often outsourced to a management company which provides all the services required to run a regulated insurance company under the supervision of the mutual’s board of directors.