Mutual insurers across the UK have outperformed the rest of the insurance market, according to research from the International Cooperative and Mutual Insurance Federation (ICMIF).
The Market InSights: UK 2016 report shows the sector reported the highest level of insurance premiums since the financial crisis of £19.6bn – a 10% climb on the previous year (2015: £17.8bn). Growth exceeded the average market growth in six of the previous nine years, resulting in the mutual sector’s share of the total UK market rising from 4.4% in 2007 to 8.7% in 2016, its highest level since the 1990s.
There are 100 mutual insurers in the UK, which collectively employ around 27,000 people and serve over 30 million members/policyholders. The majority of the UK’s oldest insurers still operating today are mutual (mostly friendly society) insurers and many have been writing business and serving their members for over 150 years.
Gina Fusco, director of strategy and marketing at the nation’s largest rural insurer NFU Mutual, said: “Mutual insurers in the UK delivered a good performance for their members and strong growth in a year of many challenges and a more uncertain environment. At NFU Mutual, our commitment to serving our customers’ long-term interests instead of generating short-term shareholder profits, underpins our solid results and sustainable growth.”
The report was published in partnership with the Association of Financial Mutuals (AFM), the UK trade body that represents mutual and not-for-profit insurers, friendly societies and other financial mutuals. Commenting on the report, Andy Chapman, chair of the AFM and chief executive of The Exeter, said: “The results in the latest Market InSights UK report prove how resilient the UK mutual insurance sector is now. In the last 10 years, while the UK insurance market has lost GBP 1 in every GBP 6 of premium income, amongst mutuals, we have grown premiums by two-thirds. The sector continues to promote its consumer-focused credentials, and is lobbying for rule changes that level the playing field and help maintain our impressive recent growth.”
Shaun Tarbuck, chief executive of ICMIF, added: “Now that we are approaching the 10 year anniversary of the onset of the global financial crisis, it is especially encouraging to see that UK mutual insurers are continuing to grow, and at a faster rate of than the rest of the market. The consistent growth in market share is very positive, but more so is the growth in membership numbers for our sector. Over the previous five years, there has been a 13% increase in the number of members or policyholders of mutual insurers, highlighting that in the backdrop of political and regulatory uncertainty, the UK consumer is recognising the benefits of being protected by a mutual, especially in terms of their life insurance and savings business.”
