Say a large group of citizens formed an orgnization to equalize risk, say of automotive accidents. Everyone paid a premium to a company that was managed by paid professionals, but say that organization was not allowed to make a profit. Any ‘profit’ would take the form of reduced insurance premiums.
Does such a thing exist, can you eloborate?
growing inside,can you eloberate?
growing inside,can you eloberate?
What your sort of talking about, is a RECIPROCAL insurance exchange. That is usually for larger scale things, like physician’s medical malpractice.
It could also called a "mutual" insurance company, where the policy holders actually own the company.
Any profits left over at the end of the year are redistributed to the policyholders. There are still a few true mutual companies left in the US, but they would vary from state to state.
In principle, that is what all mutual insurance companies do eg Farmers. However, once they get bigger than a certain size, it gets hard to tell the difference between a mutual insurance and stock (for profit) insurance company.
Yes, mutual companies and insurance non-profits exist aplenty. The problem still remains that administering all those policies and setting aside adequate reserves takes a lot of resources. These organizations also aren’t required to spend frugally, only that any unspent income goes back to the owners.
See NY Life, Blue Cross Blue Shield of NC, and USAA as examples in life, health, and P&C, respectively.