Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 6

In the life insurance industry, we see two major ownership structures-common stock insurers and mutual insurers. In the common stock companies, the owners -its stockholders-are a separate group from its customers-the policyholders. In a mutual, the policyholders are also the owners of the company. It has been argued that mutual insurance companies are dinosaurs-they are large, slow, bureaucratic, and inefficient. How would you respond to such an argument