Which form of insurer has shareholders?

Reciprocal companies operate on a principle of mutual insurance where policyholders exchange insurance with one another. They do not issue stock or have shareholders; instead, they are owned by the policyholders themselves, who share in the profits and losses. Thus, this structure does not involve shareholders in the traditional sense.

Mutual companies are owned by their policyholders, who have the right to vote on management decisions and share in the profits of the company. They do not have shareholders in the form of stockholders, as their primary objective is to serve the interests of policyholders rather than generating profit for external shareholders.

Risk Retention Groups are a type of mutual insurance company formed by members of the same profession or industry to provide liability coverage. They are owned by their members and do not have shareholders. Like mutual companies, they focus on serving the needs of their members rather than generating returns for external investors.