What type of insurance companies are owned by their policyowners?

Mutual insurance companies are owned by their policyholders, which distinguishes them from other types of insurance companies. In a mutual company, the policyholders collectively own the company and typically have a say in its management, including the ability to elect the board of directors. This structure allows policyholders to benefit from the company's profits through dividends or reduced premiums, reinforcing the alignment of interests between the company and its policyowners.

In contrast, stock insurance companies are owned by shareholders who may or may not be policyholders, focusing more on profit generation for their investors. Reinsurers provide insurance to other insurance companies rather than directly to consumers, and foreign insurers refer to companies that operate outside of the country of the policyholder, not determining ownership by policyholders. Therefore, mutual insurance companies represent the correct answer as they embody the ownership model in which policyholders are integral stakeholders.