Find Out More


More On Types Of Uk Insurance Company...

In theory, the funds provided by shareholders are an extra resource for the proprietary company to draw on if things go wrong; in practice, many of the old-established companies, whether mutual or proprietary, have such large reserves that the amounts of shareholders' funds can be of academic interest only.

Strictly speaking, the management of mutual companies is answerable only to policyholders, while that of proprietary companies is answerable in the first instance to shareholders.

Policyholders are in general less aware of the activities of management than are shareholders, who are likely to react more quickly than policyholders to any decline in the fortunes of their company.

Mutual companies are more inclined to regard themselves as trustees for their policyholders' savings and are therefore less likely to take risks with the introduction of new policies or methods of development than proprietary companies, whose desire for expansion and growth may drive them dangerously fast.

There is overall no real advantage in the type of company in itself; what is important, is that there are very good and very poor companies in both classes and it is highly desirable to avoid the inferior ones.

An Online Guide To Life Insurance - Find out more about ....

Other readers found these pages interesting


Read On: read next:for Unit-linked Companies Versus Friendly Societies

Unit-linked companies are virtually without exception proprietary, and most are much smaller and more recently founded than their larger conventional brethren, though the largest unit-linked companies have now attained considerable size.
Unit-linked offices fall into two categories, those owned by some other large and reputable financial organisation such as a bank or another insurance company, and those owned by private family companies, overseas interests or peripheral financial next:for Unit-linked Companies Versus Friendly Societies


Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.


We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

Giving power to the reader...

  • To contact us, send an email and we will get back to you as soon as we are able. If you are looking for independent life insurance quotations then click here. If you are looking for any of the folliowing: Car insurance
    Bike insurance, Travel insurance, Home insurance, Life insurance, Landlord insurance, Pet insurance, Medical insurance, Dental insurance, Business insurance please click here

  • Have something to say?
    We publish financial articles on this site if they fulfil our requirments. more>>