Anonymous
Anonymous asked in Business & FinanceInsurance · 1 decade ago

Are there insurance company equivalents of credit unions?

I had someone once tell me there were insurance companies that acted like credit unions. Where the members owned the company and it made things cheaper. Does anyone know about these? Is there a list to choose from, provided you are qualified.

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  • NC
    Lv 7
    1 decade ago
    Favorite Answer

    They are called mutuals, or mutual insurance companies. However, they are not necessarily cheaper. Moreover, there is a trend of converting mutual insurance companies into stock insurance companies.

    The largest mutuals in life and health lines are:

    New York Life Insurance

    TIAA-CREF

    Mass. Mutual Life

    Northwestern Mutual

    Guardian Life of America

    Thrivent Financial for Lutherans

    Western & Southern Financial

    Mutual of Omaha

    CUNA Mutual Group

    Mutual of America Life

    Knights of Columbus

    The largest mutuals in property and casualty lines are:

    State Farm

    Auto-Owners Insurance

    Country Insurance & Financial Services

    Sentry Insurance Group

    Amica Mutual Insurance

    Federated Mutual Ins.

  • Anonymous
    1 decade ago

    Your best bet is to shop for insurance without regard for the structure of the company. Just look for good coverage at a good price from an well-rated insurer. You can get some help from your state insurance department in deciding which insurance companies are worthy of your consideration. For this purpose, go to http://www.naic.org/state_web_map.htm and click on your state to go to the right web site. What you want to look at is the "complaint index" for the companies which sell the kind of insurance you are considering. Try to find a company with a low complaint index.

    The reason I advise ignoring the structure of the company is that you can find a good investor-owned company that operates efficiently so that it can pay claims to its policyholders and dividends to its stockholders. Conversely, you can find an inefficient mutual insurance company (owned by policy holders) where the top management gets outrageous salaries, there is very little oversight, and the claims are poorly paid. So, "you can't tell a book from its cover" and you can't select an insurer from its structure.

    Best wishes.

  • 1 decade ago

    A "mutual" company is similar to a credit union in that the policy holders "own" the company.

    You have to be careful however cause some companies that still use the work mutual are not true mutual companies.

    But defintion wise that's what you are asking.

  • 1 decade ago

    Lloyds of London is a member supported institution, much like a credit union.

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  • 1 decade ago

    There are, but they are almost gone. Prudential was one, until they converted. They are mostly now small groups and societies that offer their members (for example) life insurance in that way. You'll probably not be able to find a list

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