The Different Types of Insurance Companies

The Different Types of Insurance Companies

The average consumer recognizes that there are differences in fast food companies, automobile companies, department stores and grocery stores. But do you know that there are also significant differences in insurance companies? Insurance companies differ in how they use their profits, how they operate and the products they provide. Here are some different types of insurance companies you should be aware of.

Captive Insurance Companies

These are generally companies that offer a specific type of insurance and who require their agents to only offer their products. They are often advertised as an “Our Brand “ insurance company and offer only products their brand provides. Agents representing these companies tie their reputation to the brand they represent.

Independent Insurance Agencies

Independent insurance agencies allow their agents to offer products from a variety of insurance companies. This allows more flexibility for agents to find companies who provide the most effective and cost-efficient products for their customers.

Mutual Insurance Companies

Mutual insurance companies are owned by the policyholders who are considered shareholders. These shareholders often receive dividend payment distributions and may not be penalized by an increase in premiums due to losses. This varies by company.

Stock Insurance Companies

Stock companies are for-profit corporations. They are owned by shareholders who receive dividend payments. Additionally, a company may be classified as a “monoline carrier” meaning it only writes one line of coverage or as a “multi-line company” who writes policies on several different types of insurance. These both can be Stock Insurance Companies.

Lloyds of London

These types of high-risk insurance companies specialize in underwriting unusual items like celebrity body parts, or rare, extremely valuable items. While they specialize in these unusual high-risk items, they also insure more main-street items.

The insurance company best for you will depend on your risks and budget. It is why we believe an independent insurance agency is most valuable in suiting the needs of its customers. We can search multiple companies to find the one best to manage your risks at the most competitive price. To see how we can assist you, simply contact us for a no-obligation insurance review and quote. You are always in control.

We believe we can assist you in finding more personalized coverage at a competitive rate. Contact us today to get started. We would appreciate the opportunity to assist you.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

What is Decreasing Term Life Insurance?

Is Decreasing term Insurance Right For You? Would You Know?

Three Ways Life Insurance May Help Pay For College

How Life Insurance Can Play a Role in the Education of Your Child

Life Insurance as a Gift

Who Do You Know that Can Benefit?

What it Takes to Qualify as a Beneficiary

Do you have the right person as the beneficiary on your life insurance policy? Here’s who you should consider and when you may want to consider a change.

Unique Benefits of Life Insurance You May Not Be Aware Of

There’s More to Life Insurance Than You May Realize

What You May Need to Know About Filing a Life Insurance Claim

Filing a life insurance claim can be a relatively smooth, hassle-free process when you know the steps to take. Learn more in our latest blog.

When Should I get Life Insurance on My Child?

Reasons to Get Life Insurance on Your Child ASAP.

Beyond Life Insurance: Other Death Benefits for Which You May Qualify

There May Be Multiple Resources for Benefits Upon the Death of a Loved One

Situations When Term Life Insurance May Be the Best Solution

Term Insurance is a Flexible and Affordable Choice

What is “Double Indemnity”?

Life Insurance Can Have Confusing Terms. This Should Not One

Leave a Comment