Valuing our Mutuality is an ICMIF project, led by its European regional association, ACME. It follows in the footsteps of a number of important studies carried out by the Federation over the years. The project started in 2000 to raise public awareness of mutual and cooperative insurance against the wave of demutualisations taking place in the financial sector, especially in Europe but also gaining momentum in other parts of the world.
Besides being a research study, this project aims at activating and involving as many ACME and ICMIF members as possible. A political reference group of senior executives from member companies and a think tank of member representatives are essential ingredients of the project work.
The research focuses on four areas: financial and business performance, the concept of mutuality, legislation and capitalisation; and demutualisation trends and post-demutualisation realities.
The first findings
The first research report was published in 2001, with an updated report published in 2002. Further updates are planned in the near future.
The in-depth analysis of the financial performance of ninety-seven companies in eleven European countries represents the most comprehensive study of its kind to date.
The report
- tests the financial arguments, which are commonly advanced in favour of demutualisation and shows, with hard facts, that mutuals are generally outperforming their stock counterparts;
- explains the unique concept of insurance mutuality with interesting examples from member companies;
- looks at the long-term consequences of demutualisation and finds that the promises of increased efficiency and policyholder benefits have been largely unfulfilled;
- highlights legislative differences across Europe and argues the need for a mechanism that allows easier access to capital without demutualising.
The project findings and report will be used in an action plan for promoting and defending insurance mutuality among legislators and media at national and European levels. The project has already received considerable press coverage.
ICMIF will gradually widen the focus of the research to a present global view of the performance of mutual and cooperative insurers as compared to shareholder-driven companies.
