The company’s board of directors approved the plan, and it the company filed it with the Wisconsin Office of the Commissioner of Insurance, which needs to review and approve it. Existing policyholders will then need to approve the deal.
“Modifying our corporate structure will allow us to continually support our customers and strengthen our company as we embrace advanced technologies and related product opportunities to serve our customers better,” Scott Murphy, Jewelers Mutual president and CEO, said in a statement.
The creation of a mutual holding company will provide Jewelers Mutual with an opportunity to enhance its innovation ability and bring new value to its customers with new ventures, Murphy said. For example, the company has taken some steps to expand its offerings, including its JM Shipping Solution and JM Care Plan solutions.
Becoming a mutual holding company allows a previous mutual insurer to transition into a stock insurance company, which is wholly owned by the new mutual holding company while maintaining critical policyholder rights, Murphy said. The change will allow Jewelers to preserve its core mutuality and membership control while operating under a more flexible structure that allows it to operate its core business and pursue additional opportunities.
The transition would not affect any of the company’s current coverages, premium rates, loss prevention or claims-handling processes. Policyholders will see no change to how their policies are handled. They will become a part of the new mutual holding company with essentially the same membership rights they have now.