The mutual insurance association is a private insurance company with its own legal personality, whose customers become members of the association at the same time as the insurance contract is concluded.
Capital of a VVaG
In contrast to the cooperative, the members do not need to take over any business shares. The benefits to the insured are provided from the contributions of the insured. If there are shortfalls (losses), the contributions are increased accordingly. If profits are made, annual rebates are paid to the members.
Organs of a mutual insurance company
the organs sind im wesentlichen der Genossenschaft gleich. Allerdings besteht aufgrund der u. U. hohen Anzahl der Mitglieder das beschlußfassende Organ aus Vertretern, die von den Mitgliedern gewählt werden. Dieses Organ heißt deshalb auch „oberste Vertretung“.
Importance of a VVaG
The VVaG is based on the idea of solidarity, which can also be found in the state-regulated social insurance institutions. The market share of WaG in the private insurance business is approx. 25% of the total premium income.