What type of organizations do fraternal insurers typically serve?

Fraternal insurers primarily serve members of social or religious organizations. This model is centered around the idea of mutual aid and providing benefits to members who share common social, cultural, or religious backgrounds. Fraternal insurance organizations function by offering various insurance products while simultaneously fostering a sense of community among their members. The premiums collected are often used not only to provide insurance but also to fund social activities and programs that enhance the bonds between members.

This type of insurance is distinct from traditional insurance companies, which focus primarily on generating profit. By serving specific groups rather than the general public, fraternal insurers can tailor their products and services to meet the unique needs and values of their members. This approach creates a supportive environment where members are more likely to engage with each other and participate in community events, reinforcing the fraternal organization's social mission.