What Does Mutual Insurance Mean?

Mutual insurance is the kind of insurance wherein the policy holders also have some form of ownership rights in the company. These rights not only consist of the ability to elect the management of the company but also to participate in the distribution of any surplus or net assets. The latter however is only applicable in case the company stops doing business. The International Cooperative and Mutual Insurance Federation which happens to be the global cooperative union for the mutual insurance industry has approximately 142 members in around seventy countries which represent a total of four hundred insurers.