Cooperative and mutual insurance in Europe for mutual benefit Cooperative Insurance Conference Istanbul, 24 March 2014
Jun 18, 2015
Cooperative andmutual insurancein Europe
for mutual benefit
Cooperative Insurance ConferenceIstanbul, 24 March 2014
A cooperative or mutual insurer is an insurance undertaking which is collectively owned by its members who are at the same time its clients (policyholders).
What exactly is a cooperative or a mutual insurer?
How does a cooperative or mutual insurer differ from stock company insurers?
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Cooperative or mutual insurer
Any profits earned by a mutual insurance company are returned to policyholders in the form of rebates or reduced future premiums, or saved for the future.
Stock company insurer
A stock insurance company is owned by outside investors who have purchased company stock; profits generated by a stock insurance company are distributed to the investors without necessarily benefiting the policyholders.
The mutual and cooperative insurance sector ...
... includes some 3,000 undertakings in Europe (i.e. more than 50% of all insurance undertakings).
... insures 200 million Europeans.
... employs more than 300,000 staff.
Market shares of the sector: 28.5% in Europe (2008: 25.9%)
over 32% in non-life (incl. health) some 25% in life insurance
Facts and figures about mutual/coop insurance in Europe
50% in the Netherlands 45% in Germany 43% in Denmark
Sources: ICMIF Global Mutual Market Share Report 2012, AMICE Statistics
40% in France 35% in Spain 30% in Finland
~ 110 insurance undertakings as direct members + six national associations
from 20 countries
Mutuals account for ~30% of market share in Europe
AMICE (direct) members have close to 60%
AMICE Membership
United in diversity
For mutual benefit
Diversity in AMICE membership Insurers that operate in the form of a cooperative (e.g. TR, BE, IT)
Insurers that operate in the form of a mutual (e.g. DE, FR, NL, DK, ...)
(Horizontal) mutual groups (e.g. DE, FR, FI)
Mutuals that act as the holding of an insurance group, with or without insurance activities of their own (e.g. DE, AT)
Insurers owned by cooperative banks (e.g. DE, PL, IR; FR, FI)
Insurers owned by (non-ins) cooperatives (e.g. IT, GR, UK)
Hybrid forms (e.g. NL, NO, AT)
Other not-(only-)for-profit / stakeholder-driven insurers
Diversity in history and background (I) Insurers established in a region, either by citizens (Hamburg),
the king (Copenhagen, Italy) or the territory (France)
Insurers with a professional background ... for employees, often established by trade unions or workers
movements (teachers, policemen, medical staff, priests, ...) for “free professions” (architects, pharmacists, doctors, lawyers,
notaries, ...), often with a specialised product portfolio for independent entrepreneurs (farmers, fishermen, driving
schools, jewellers, butchers, taxis, shopkeepers, truckers, ...) for enterprises (fruit growers, hospitals, constructors, industry,
cities, ...) for interest groups (motorcyclists, boat owners, ...)
Diversity in history and background (II) Insurers established through outstanding initiatives by
individuals
Insurers established by the public hand (complementary health insurance in Slovenia, hail insurance)
Insurers established by non-insurance movements, e.g. Cooperatives (IT, UK, GR, TR, IR, ...)
But what unites them is their business model:
Insurance for mutual benefit = Mutual Insurance
What are the benefits of mutual/coop insurers for….
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... the member-policyholders
All surplus is exclusively used for the benefit of the members.
No dividend is paid to outside shareholders.
Members are included and participate in the democratic governance.
... the insurance markets
The mutual business model competes with the shareholder-oriented model
Mutual insurers are innovative; they listen to the needs of their members.
They have a long-term business
orientation and investment behaviour.
... our society
Mutual insurers act in a socially responsible way.
Many mutual insurers are engaged in societal activities.
Mutual insurers tend to be reliable long-term employers.
... the economy
Mutuals’ long-term orientation provides stability to the financial sector.
The diversity of business models increases the resilience of the sector.
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Promoting
Assisting
Advocating
AMICE’s main objectives
Through exchange of experience and best practice By providing information and services to member Members in their national discussions.
Mutuality as the alternative model
The mutual model where it does not exist
A societal role for mutual insurers
Fair treatment of all legal forms
Proportionality
A secure future for small and specialised insurers
Hear more about all this ....
at the AMICE Congressin Nice (France)on 4-6 June 2014
under the topic
Business – the mutual way
visit www.amicenice.eu
www.amice-eu.org
Association of Mutual Insurers and Insurance Cooperatives in Europe aisbl
Rue du Trône 98/14 | B-1050 Brussels | Belgium T: +32 2 503 38 78 | F: +32 2 503 30 55 | [email protected]