Insurance cooperatives operate much like retail cooperatives except that they provide insurance services instead of consumer goods.
Policyholders constitute the membership and elect the board of directors.
Insurance cooperatives operate by pooling and investing the premiums paid by members. The revenues generated are then used to reduce the costs of providing insurance. Because policyholders are also owners, any profits are returned to the consumers as dividends. Insurance cooperatives are able to provide lower insurance rates and greater control for members. All rights reserved.