Which type of insurer operates primarily for the benefit of its members?

The type of insurer that operates primarily for the benefit of its members is a fraternal insurer. Fraternal organizations are typically formed for mutual aid and social purposes, and they provide insurance benefits to their members. These members often share a common bond, such as belonging to the same religion, trade, or social group.

Fraternal insurers are distinct from other types of insurance providers because they not only offer insurance coverage but also emphasize community and support among members, promoting social welfare activities and events designed to enhance the bonds within the group. As a result, any profits generated by the fraternal insurer may be used to improve benefits for its members or fund community endeavors that strengthen the relationship among them, rather than being distributed to shareholders as with stock companies.

This focus on member benefit and community service is what sets fraternal insurers apart, emphasizing the concept of mutuality and shared interest over profit generation.