Mutual insurance companies are organizations owned by their policyholders rather than shareholders. This means that the people who buy insurance from the company also have a say in how it operates and can benefit from its profits, often in the form of dividends or reduced premiums. In a mutual insurance company, the focus is on serving the needs of its members rather than maximizing profits for external investors. This structure can lead to a more customer-oriented approach, as the company prioritizes the interests of its policyholders, who are essentially its owners.