Our members are purely mutual insurance companies known as Ontario Mutuals.

They provide home, auto, commercial, and farm insurance to communities across the province.

Mutual insurance companies operate on a non-profit philosophy.

There are no payments of dividends to stockholders. Expenses consist of claims payments and administration expenses to operate the company.

There are only two sources of income for a mutual insurance company – policyholder premiums and investment income from the investment of surplus funds. The goal is simple: to provide for the needs of policyholders while ensuring the company remains financially stable.

Our Association has a rich history dating back more than 140 years.

Our History
Back in the mid-1850s, 14 farmers got together in one place and signed a note promising to reimburse one another in case of a barn fire. No one else would offer insurance to these pioneers so they did it themselves. Those are the humble beginnings of one of the world’s strongest financial networks, Ontario Mutuals.
Mutuals Go Further Back
Mutual insurance got its start following the great fire of London in 1666 and became established in North America in 1752. The British American Assurance Company, a stock company, was established as the first domestic insurer in 1833. Meanwhile, Benjamin Franklin helped establish the first successful mutual insurance company in America in 1752.
Mutuals Reach Canada
To encourage the formation of domestic insurers, the Governor of Upper Canada, Sir Francis Bond Head, introduced legislation in 1836 permitting the establishment of mutual companies. In the 1850s, the act was amended to permit additional mutual companies. As a result, many companies were organized during the 1850s and 1860s.
We're in this together
When first organized, the farm mutuals had to gain their knowledge of insurance by experience. As the number of companies grew, it became apparent that they should get together to share experiences and discuss common problems and possible solutions.

The premium note was the financial backing of the mutual companies and served as a vital factor in their establishment and development. However, by the early 1970s it had become apparent that it would be better to develop an alternative. The result was the formation of the Fire Mutuals Guarantee Fund.

Through the theories of “strength in unity” and “neighbour helping neighbour” the mutuals set up an open-ended fund to guarantee that all policyholders’ outstanding claims and unearned premiums would be honoured in the event that any one of the mutuals could not honour its claims or outstanding policies. This fund is backed by each of the mutuals and our reinsurer, Farm Mutual Re, thereby placing the surplus of all member mutuals behind any one.

The Premium Note

1800s

When fire occurred, an assessment of whatever percentage was needed was levied, collected in due course, and paid over to the unfortunate one who had suffered the loss.

Unified Regulation

Early 20th Century

Companies began estimating future losses and costs of operation as a basis for rates. Under this system, levy on the premium note was only made when expenses exceeded the estimated cost for the year.

The Guarantee Fund

1975 – Today

An open-ended fund was set up for the purpose of guaranteeing that all policyholders’ outstanding claims and unearned premiums would be honoured in the event that any one of the mutuals could not honour its claims or outstanding policies.

The principle of neighbour-helping-neighbour is at the heart of the mutual insurance model.

Ontario Mutuals News

Read the latest issues of our community newsletter, OM News!

Summer 2026

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Members, our deadlines for OM News submissions are July 23rd (Summer) and October 15th (Fall).