Which type of insurance company allows policyowners to participate in electing the governing body?

In a mutual insurance company, policyholders are not just clients but also owners of the company. This ownership structure grants them the right to participate in the election of the governing body, typically the board of directors. Each policyholder generally has a vote, and this allows them to have a direct say in the management and strategic direction of the company.

This model is built on the principle of policyholders sharing in the company's profits through dividends, which are often paid out based on the company's performance and the underwriting results. As they are invested in the company’s success, their ability to vote in elections emphasizes their role as stakeholders. This participatory structure distinguishes mutual insurance companies from others, such as stock insurance companies, where shareholders, rather than policyholders, typically hold that voting power.