Could an insurance company be non-profit?


I was just curious if there was some law or regulation somewhere that stipulated that an insurance company had to be a for profit business? If you had the capital to cover the costs, could you run a insurance company as a npo and funnel profits into a cost sharing fund or something like that?


No, there is nothing preventing non-profit organizations from offering insurance. Indeed, this is quite common in health care, with non-profit health insurers accounting for over 60% of health plans with more than 100,000 people enrolled ( In the 2012 Consumer Reports health insurance ranking, all of the top ten private plans were nonprofits.

Last updated on
February 19, 2020

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