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Discover the Benefits of a Mutual Insurance Company

Posted by CFM Marketing on 30, Mar 2016

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The word "mutual" isn't just a catchy marketing term used to make our insurance company sound better than others. By Federal law, CFM Insurance is classified as a Mutual Insurance Company in the State of Missouri. But what in the world does that even mean? And more importantly, why should you choose a mutual insurance company to protect your property? Let's explore what makes the mutual difference in an insurance company, starting with a brief history lesson:

Back in 1696, the first mutual fire insurance company was founded in England. Someone by the name of Benjamin Franklin (you may have heard of him) admired the concept of a mutual insurance company so much that he wanted to mirror it here in America. By 1752, Franklin had acquired enough wisdom and support to establish his own mutual insurance company, which he called the Philadelphia Contributionship for the Insurance of Houses From Loss by Fire. In his own words, Franklin's start-up was built on this principle: “Mutual insurance is an idea whereby every man might help another, without any disservice to himself.” This leads us to the first benefit of choosing a mutual insurance company:

We Are Owned By Our Policyholders


A mutual insurance company is owned entirely by its policyholders. Simply put, it is a company that is not publicly traded and therefore, has no shareholders. In contrast, a stock insurance company is owned by investors who have purchased company stock. Any profits generated by a stock insurance company are distributed to the investors without necessarily benefiting the policyholders. Our foundation as a mutual insurance company was formed in line with Franklin's beliefs and it remains that way today. We put our policyholders first and treat them with honesty and respect in their time of need, just as we would expect to be treated by our own neighbors.

It's A Membership Much like a Credit Union, we consider our policyholders as members of our mutual "union". So, as long as our members maintain their policy, they remain a part of the Mutual. Each year, our policyholders are entitled to vote in the Board of Directors elections, and in turn, expect that the Board's priority is to safeguard their interests always. We can't stress enough that our relationship with our members truly is a mutual one, that functions best when both parties are happy. 

We Have 150 Years of Expertise


We know Missouri and we definitely know insurance, as we've been working at this since 1869. That kind of makes us experts, right? Since our founding in the 1860's, we have worked hard to preserve and respect the history of the company, while steadily moving forward in a progressive nature to maintain the status as one of the best property and casualty insurers in the state. Throughout the years, our priority has always been centered around taking every customer experience into account and examining areas where we excel, along with areas where we could improve. This has allowed us to adapt to change and progress right along with our policyholders on the never-ending journey of twists and turns that make up everyday life. Our goal for the next 150 years is to continue with that forward-thinking mindset while uninterruptedly providing great protection through modern insurance packages, ease of doing business with our agents, and simply being good to people.

We Only Partner With Local, Independent Agents We Trust


We like working with people we know and trust, and we'll bet you feel the same way. Not only do you experience the "warm and fuzzies" when you're able to say you "shop local," but you just get better service - plain and simple. We have built a network of 700 independent agents who live and work in the communities they serve. When they leave the office, they're coaching your child's ball team, volunteering at church, and fundraising for the local FFA chapter. They are everyday people who have worked hard for their homes, farms, and businesses - just like you. And that's why we trust that they are the best at providing reliable and honest service for our policyholders.

We Are Fully Backed By Reinsurance


Did you know insurance companies buy insurance just like you do? Reinsurance, as it's called, helps insurance companies to mitigate the risk they assume when they insure your property. When a company experiences a great deal of losses, they may file a claim for reinsurance to help assist with the loss payments. This allows the company to maintain financial stability and continue business as usual.

Because we have a strong reinsurance program in place for our 25,000+ policyholders, CFM Insurance has the financial strength you need and trust in your insurance company. We currently hold an "A - Exceptional" rating from Demotech, who specializes in rating property and casualty insurance companies on their financial stability. The ability to pay claims when they occur is part of that A rating as well, and it's something we're proud of. We will continue to be financially strong for our members because of reinsurance, and by keeping growth at a minimum, steady pace while spreading our risk throughout the state of Missouri. 

We Are All About Community


Most mutual insurance companies have long histories of being a local, hometown business. We're proud to say we fall into that category as we've always maintained the "home base" in our hometown of Concordia, Missouri, where we were established all those years ago. We take pride in contributing to the many honorable businesses and causes not only here at home, but across the state. Our presence will always be visible at the local sporting events, fairs and festivals, new business openings, charity fundraisers, and more because community is not just what we do, it's who we are. Our roots run deep in this Missouri soil and it's where we plan to stay and grow, forever. 

As you see, mutual insurance companies have come a long way since their humble beginnings. From only protecting against fire loss, to providing coverage against almost every peril imaginable, mutual insurance companies have proven to be an indispensable service to those in search of stability and trust from an insurance provider. At CFM Insurance, we cheer when you flourish, we fight when you need a hero, and we encourage you to grow because we're ready to grow with you. We're in this with you for the long haul, no matter where life takes us.

Experience the CFM Mutual difference by finding an agent near you, today. 

Topics: Insider

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