While you transfer most of the risk to an insurance company you may have to share part of the losses. Examples of this would exist in health, auto and casualty insurance through the use of deductibles and co-insurance requirements. Examples of risk reduction is the installation of smoke detectors, sprinkler systems, burglar and fire alarm systems and the use of air bags in autos. Some insurance companies offer special rate reductions when you have some of these. Owned by shareholders just like shareholders of other corporations.
Shareholders share the profits of the company when and if a dividend is declared.
This type of dividend represents profits, not a return of invested capital. Policy owners may receive dividends, but unlike a stock company dividend, the dividends represent a return of premium. This is just a brief overview. For more detailed information on specific types of insurance refer to our Products and Services page.