Which insurance company structure allows for policyholders to have a say in company governance?

A mutual company is structured in a way that provides its policyholders with ownership rights, which includes the ability to participate in governance. In mutual insurance organizations, the policyholders are considered members of the company, and they have voting rights typically proportional to their insurance holdings. This means that policyholders can influence key decisions, such as electing the board of directors, approving major changes to policy or company operations, and potentially participating in the distribution of surplus profits.

This governance structure contrasts with stock companies, where shareholders—who may not be policyholders—own the company and have the decision-making power. Fraternal benefit societies also have a governance model that includes member participation, but they function differently, usually focusing on providing specific benefits to their members rather than operating as a traditional insurance company. Intermediary companies, such as brokers or agents, act as a liaison between insurers and insured parties but do not have a governance structure that includes policyholders in decision-making processes. Thus, the mutual company stands out as the correct answer, reflecting a system where policyholders actively engage in the company's governance.