Final answer:
Mutual insurers are owned by policyowners who purchase policies from them, sharing profits as dividends. In contrast, stock insurers are owned by shareholders. Income for insurers comes from premiums and investments.
Step-by-step explanation:
The topic of discussion in the provided question relates to types of insurance companies. These entities are known as mutual insurers. Mutual insurers are owned by the policyowners, who become owners by purchasing an insurance policy from these companies. Unlike stock insurers, which are owned by shareholders, a mutual insurer's profits are typically shared with the policyowners in the form of policyowners' dividends. This ownership structure contrasts with stock insurers, which are owned by investors who buy shares of the company, as well as other forms such as reinsurance companies, which provide insurance to other insurers, or Lloyd's of London, a specialty insurance market with a unique structure.
Insurance companies derive income from two main sources: premiums paid by policyholders and investment income from funds not paid out in claims. These companies invest the reserves in liquid investments to ensure funds are readily available in the event of significant claims.