Stock Insurance Company
Updated: 05 November 2024
What Does Stock Insurance Company Mean?
A stock insurance company is an insurance company owned by shareholders rather than policyholders. These shareholders profit through dividends or from an increase in the stock price over time, but they may also incur losses if the stock value declines.
Insuranceopedia Explains Stock Insurance Company
Stock insurance companies serve as an alternative to mutual insurance companies. In mutual insurance companies, policyholders, rather than shareholders, own the business. However, in a stock insurance company, the interests of policyholders are prioritized; shareholders only receive dividends if policyholders’ needs are fully met and surplus funds remain. Many people choose to invest in stock insurance companies by purchasing shares.
