What type of insurance company is owned and controlled by shareholders?

A stock insurance company is owned and controlled by shareholders who purchase stock in the company. The primary objective of a stock insurance company is to provide a return on investment to its shareholders while also offering insurance coverage. This type of company is typically set up as a for-profit entity, allowing it to operate with the aim of generating profits for its investors.

In contrast, a mutual insurance company is owned by its policyholders, who share in the profits and may receive dividends or reduced premiums based on the company's performance. Reciprocal insurance companies consist of groups of individuals or organizations who exchange insurance coverage among themselves, and fraternal benefit societies are nonprofit organizations that provide insurance and other benefits to their members, often based on shared affiliations or beliefs. Thus, the distinct ownership structure of stock insurance companies makes them unique, aligning their operations with the interests of shareholders rather than policyholders.