Mutual Insurance Company

You might have a food co-op in your neighborhood...a hipster alternative to a branded corporate grocery store chain. A mutual insurance company represents a kind of insurance-industry version of this.

These organizations provide coverage to its policyholders, just like a regular insurer. However, they're structured so that the entity is owned by its policyholders. So, instead of having shareholders own the company, providing insurance to policyholders (who basically serve as the company's clients), the policyholders themselves own the firm.

The idea is that the company can provide cheaper coverage, because there's no profit being taken off the top. If the company happens to post a profit, the extra money gets held in reserve (or invested). Or those additional funds might get rebated or distributed to the policyholder/owners.