Stock Insurance Company
A stock insurance company is owned by a private business or organization and the shares are sold over to the investors, through the share market. It may act as a private insurance company where the stocks are sold out of the stock exchange within some private shareholders. Also a publicly traded stock insurance company exists, where the shares are traded transparently in the stock market.
A short-term investment plan
Here the investors or share holders, trade their shares in the share market and take hold of the returns in a shorter duration of time. So naturally, the stock insurance company has the pressure to focus on larger returns. It has a great access to capital as the shares are continually traded. Hence they can develop in a faster rate by paying claims, easily raising capital for funding the business, etc.
Pros and Cons
In a stock insurance company the dividends are declared for every quarter of a year. Hence the investors get the opportunity to gain more dividend payoff. Also the share holder has the right to sell his share at any desired time.
The disadvantages of stock insurance companies are, the investor do not have any managerial power. The person holding the maximum stock value only will have managerial power, which always is held by the founder or CEO of the company. Also the company can be acquired by another insurance company and this might affect long-term investors.