A mutual insurance company, by its business structure, is controlled by its policyholders/members by annually having the ability to vote for the Board of Directors – hence the mutual relationship. Members are, in essence, insuring each other against property loss. Mutual insurance companies are oftentimes formed by a group of people that share a mutual unmet need for specific insurance, such as a group of lawyers, a group of churches, or, as it was in the formation of Pike Mutual, a group of local farmers in Pike Township, Stark County, Ohio.
A Short History of Mutual Insurance
The idea for a mutual insurance company first came about in 17th century England and was created to help cover losses due to fire. In fact, the first American insurance company was a mutual company. It was established in 1752 by Benjamin Franklin and was called The Philadelphia Contributionship for the Insurance of Houses From Loss by Fire. It is still in business today.
Benefit of Mutual Insurance
Because a mutual insurance company is owned by its policyholders and not by investors, it is possible to provide insurance coverage to its policyholders at or near cost. The nature of a mutual insurance company also lends itself well to providing niche insurance for specific markets.
Since 1878, Pike Mutual Insurance Company has been dedicated to serving its policyholders and continues to offer quality products and options on our insurance products to meet the needs of our policyholders.