An insurance company is a business. Its sales revenues are the premiums it collects from the individuals and firms it insures. Pricing and product are very important and exacting issues to an insurance company. The Principle of Indemnity. Insurability of the Risk.
Price is usually a marketing issue rather than a technical concept.
Ownership of Insurance Companies. Insurance companies are owned either by stockholders or by policyholders. A stock insurance company is owned by stockholders and is operated to earn a profit. A mutual insurance company is collectively owned by its policyholders and is thus a cooperative. Both stock and mutual insurance companies must maintain cash reserves to cover future obligations and policyholders' claims.