In this guest blog, Dr Ariel Guarco, President of the International Co-operative Alliance (ICA), the apex body representing cooperatives worldwide, looks at the history and origins of the first mutual insurers and insurance cooperatives; how the sector has grown through cooperation; and what the future holds for our sector, notably the significance of next year’s International Year of Cooperatives which will spotlight the crucial role of cooperatives in building a more inclusive, sustainable future. Dr Guarco, a leader in the Argentinian cooperative sector, will be a keynote speaker at the upcoming ICMIF Biennial Conference in Buenos Aires (12-16 November 2024). 

Cooperation is one of the oldest and most valuable pillars of humanity. In the insurance industry, this principle has proven to be a powerful force for the well-being and security of communities around the world.

In reflecting on the history and origins of the first insurance cooperatives and mutual insurers, it is essential to understand how these entities came into being and how they have evolved to become a cornerstone of the global insurance sector.

History and origin of the first cooperative and mutual insurance companies

The concept of cooperative/mutual insurance has its roots in community practices of mutuality dating back several centuries. The central idea was simple: members of a community came together to share the risks of daily life, protecting each other in times of need. This form of mutual protection laid the foundation for what we know today as cooperative/mutual insurance.

The first formal insurance mutuals emerged in 17th century Europe. The first insurance cooperative, The Co-operative Insurance Company, was formed in the UK in 1867 to provide insurance services to members of the co-operative movement. This was in a context where social protection needs were growing exponentially due to industrialisation across Europe.

Workers, who were often unprotected against accidents and illness, began to organise themselves to create common funds that could provide them with a safety net. This model quickly spread to other parts of the world, proving its effectiveness and sustainability.

The present: cooperation in the insurance industry

Today, cooperative and mutual insurers play a crucial role in the global insurance industry. They operate under principles that differentiate them from commercial insurers, such as democratic decision-making, fairness and social responsibility. These characteristics not only strengthen members’ trust, but also ensure that profits are reinvested in the communities themselves.

The cooperative/mutual model has proven to be particularly resilient in times of crisis. During the COVID-19 pandemic, cooperative/mutual insurers were able to respond quickly and flexibly to emerging needs, prioritising the well-being of their members and adapting to the challenges of a changing world. This adaptability underlines the importance of cooperation in a sector where uncertainty is a constant.

The future: the impact of the 2025 International Year of Cooperatives

Looking ahead, 2025 will be a year of great significance for the global cooperative movement. The proclamation of the International Year of Cooperatives by the United Nations will not only celebrate the historic contribution of cooperatives to the global economy, but will also provide a platform to highlight their role in creating a more inclusive and sustainable future.

For insurance cooperatives and mutuals, this will be a unique opportunity to further strengthen their impact. The global recognition of cooperation as an engine for sustainable development can drive new initiatives, strategic alliances and regulatory frameworks for the growth of the sector.

In addition, this year will provide an opportunity to raise awareness among new generations of the importance of cooperative values in a world where inequalities remain a significant challenge.

The value of cooperation in the insurance industry is incalculable. Over the centuries, cooperative and mutual insurers have demonstrated that solidarity and mutual aid are extraordinary tools to address the challenges that millions of human beings face in life.

As we approach 2025, it is essential that we continue to promote these principles and explore new ways to strengthen the cooperative/mutual model for the benefit of all people.

The International Year of Cooperatives (IYC) will be a milestone in this journey, and I am convinced that it will usher in a new era for the insurance sector where cooperation will continue to be the key to a fairer and safer future for all.

Ahead of next year’s IYC, ICMIF is convening a consultation group to explore how best to leverage this opportunity and support our sector. This group will meet virtually on 25 September, and will discuss how we can collectively communicate our successes and maximise the benefits of this unique year. For more information of how to participate, please contact ICMIF.