A Guide To Life Insurance - Types Of Uk Insurance Company ....


Find Out More


Types Of Uk Insurance Company...

Just as there are several varieties of life insurance there are likewise several types of life insurance company. Just search Google and you will see the sheer number of underwriters, brokers and price comparison sites listed.

Conventional with profit and non-profit policies are the speciality of the "ordinary branch" life insurance companies, which may be Mutuals (owned by their own policyholders), or proprietary companies (owned by shareholders like any other industrial company).

One separate class of proprietary company is the composite companies, which transact not only life insurance but general business, too. Many of the largest life companies fall into this latter category (such as Prudential, Guardian Royal Exchange, Legal & General, Commercial Union and Royal).

The difference between mutuals and proprietary companies is that in the case of the mutual all the profits go to the policyholders, whereas in the proprietary company the shareholders get a proportion of the profits.

In practice, however, the difference between mutuals and shareholder-owned companies is not so significant.

Several proprietary companies used to have a clause in their constitutions allowing 10% of profits to be distributed to shareholders, but some have dropped or amended this because they could not actually afford to do it without weakening their competitive position.

An Online Guide To Life Insurance - More on ....

Other readers found these pages interesting


Read On: read next:for Unit-linked Companies

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.read next:for Unit-linked Companies


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>>