A comprehensive guide to stock insurance companies: definitions, operating models, and the new "cryptocurrency asset" battleground in the insurance industry

The global insurance market is undergoing a critical transformation. According to the latest report from Swiss Re, from 2025 to 2027, the actual average annual growth rate of global total insurance premiums will decline from approximately 3.1% in 2025 to 2.3%. Meanwhile, the cryptocurrency market is showing strong momentum. As of January 28, 2026, Bitcoin (BTC) price is reported at $89,262.8, with a market capitalization of $1.78 trillion, and Ethereum (ETH) price has also reached $3,011.86.

The boundaries between finance and technology are increasingly blurred. How will traditional insurance structures adapt to the demands of the new era? This is the core issue explored in this article.

Core Definition of Stock Insurance Companies

Within the organizational structure of the insurance industry, stock insurance companies have a clear and unique definition. According to explicit provisions of Alabama law: “A stock insurance company is defined as an insurance company with capital stock and divided into shares.” This legal definition may seem simple but contains profound economic implications. The relevant regulations in Minnesota further clarify that “stock insurance companies” include domestic stock and mutual companies as defined by specific laws.

From an academic perspective, stock insurance companies and mutual insurance companies constitute two fundamental forms of risk sharing. In stock insurance companies, risk is transferred from policyholders to the shareholder group, i.e., the capital market. In other words, in the structure of stock insurance companies, the rights of owners and customers (policyholders) are separated; the company is responsible to shareholders, who receive investment returns through dividends and stock appreciation.

Organizational Comparison: Stock Insurance vs. Mutual Insurance

These two forms of insurance organization differ fundamentally in several aspects. Shareholders of stock insurance companies become owners by purchasing company shares, whereas the owners of mutual insurance companies are their policyholders. For mutual insurance members, ownership and policy rights are bundled and cannot be sold separately. This structural difference leads to significant operational distinctions.

Capital raising is one of the most obvious differences. Stock insurance companies raise risk capital by issuing shares to investors (shareholders) and then sell insurance products; mutual insurance companies raise risk capital through premiums, with the capital closely linked to policy sales. From a corporate governance perspective, stock insurance companies are generally more transparent, with shareholders able to supervise management through market mechanisms; mutual insurance companies more directly represent the interests of policyholders.

To illustrate the core differences between these two insurance organizational forms more intuitively, the following table compares their key features:

Industry Status and Market Trends

The global insurance market is experiencing structural adjustments. According to Deloitte’s 2026 Global Insurance Outlook, changing customer expectations, integration of brokerage channels, and the urgent need for system modernization are reshaping the global insurance landscape.

The Asia-Pacific region remains the core growth engine of the global insurance industry, with a projected compound annual growth rate of 5.3% in life insurance premiums by 2035. Strong demand in China, India, and Southeast Asian markets is the main driver of this growth.

Currently, many insurance companies are building strategic partnerships, leveraging continuous customer feedback loops and behavioral data analysis to develop highly personalized insurance products while optimizing customer service experiences. Disruptive technologies, exemplified by artificial intelligence, are profoundly changing the insurance industry. In the US market, fraud detection is listed as one of the top five focus areas for generative AI development or deployment in the next 12 months. Deloitte China Insurance Partner Huang Songxin pointed out: “Artificial intelligence is iterating at an astonishing speed, with generative AI and agent-based AI becoming the core drivers pushing the insurance industry into a new stage of development.”

New Trends: Integration of Insurance and Digital Assets

As the global financial markets evolve, the intersection of insurance and digital assets is becoming a new trend. Hong Kong has announced plans to introduce clear rules allowing insurance companies to invest in crypto assets, stablecoins, and digital infrastructure. The framework is scheduled for public consultation from February to April 2026.

The Hong Kong Insurance Authority recommends imposing a 100% risk capital requirement on volatile tokens. Considering that Hong Kong’s insurance industry premium income reached HKD 635 billion in 2024, even limited allocations could significantly enhance liquidity in the digital asset market. This development signals an important trend: traditional insurance companies may become new institutional participants in the digital asset market, bringing more liquidity and stability to the cryptocurrency sector.

Gate platform data shows that as of January 28, 2026, Bitcoin (BTC) 24-hour trading volume reached $1.31 billion, and Ethereum (ETH) trading volume was $532.7 million, demonstrating the potential of the crypto market to accommodate more institutional capital flows.

Toward the Future: Resilience and Innovation

Insurance companies are transitioning toward more flexible capital models. Large enterprises are establishing dedicated captive insurance companies, adopting more flexible capital operations and various financing tools (such as catastrophe bonds, sidecars, and other insurance securities) to underwrite risks independently. Six dedicated captive insurance companies are already operating in Hong Kong, indicating its increasingly consolidated position as an innovation hub for risk management in Asia. This development model provides a reference for how the insurance industry can adapt to emerging risks.

For stock insurance companies, 2026 will be a pivotal year. Insurers need to balance ongoing investments in digital transformation, building high-quality data systems, transforming talent teams, and establishing partnerships that drive innovation. In areas such as cyber resilience, efficient data management, and modernization of legacy systems, insurance companies still have much to do. Technological advances will equip stock insurance companies with more tools to manage risks and improve efficiency.

The intersection between the crypto market and traditional insurance is emerging in unprecedented ways. When Bitcoin’s market cap exceeds $1.7 trillion and Ethereum remains above $3,000, digital assets are no longer fringe investments. The rules allowing insurance companies to allocate capital to crypto assets in Hong Kong will take effect in 2026, indicating that financial institutions will participate more deeply in this emerging market. While the correlation between insurance stocks and cryptocurrencies in capital markets is not yet clear, the trend of integration between the two is irreversible.