It goes without saying that today’s mutual or cooperative insurer faces both promising opportunities and unique challenges. As a sector, we represent more than 26% of the global insurance market and so play a crucial role in having a positive influence on the future impact of our industry. ICMIF members invariably stand out for our model’s commitment to member-centric values, societal resilience and long-term stability. However, like all models, we continue to compete for legitimacy and the challenge remains for mutual/cooperative insurers to maintain their unique differentiation and relevance in an industry that is going through an era of rapid transformation, increasing regulation and escalating global uncertainties.
This has come through loud and clear in the 50+ conversations I have had so far this year with member CEOs from around the world, talking about the value and impact that ICMIF has on their organisation and how we can better inspire and assist them in achieving their business goals and overcoming strategic challenges.
So what are the main challenges our CEOs want ICMIF to assist with? Access to capital, competitive difference, pricing, regulation, AI, transformation, governance and talent. Unsurprising as these challenges are, it still blows me away when I see how many of our members in non-competitive markets have competencies that they are gladly sharing with other members with via peer-to-peer exchanges of strategy. So when I tell you that we recorded 154 member-member connections between 2023-2024, it’s easy to see why our network keeps on growing.
As a global network for like-minded insurers, ICMIF can foster collaboration and exchanges amongst its member organisations to leverage unique strategic advantages, embrace transformation, and uphold operational excellence, paving the way for a resilient, inclusive, and thriving future for our sector.
Embracing the mutual advantage as an opportunity for growth
At the heart of mutuality lies a commitment to long-term stability, community benefit, and member-centricity. Unlike many stock-based insurers, driven by maximising shareholder returns, mutuals and cooperatives prioritise sustainable growth, balancing this with the interests of their member/policyholders and impact in the communities they serve.
Saying that, being profitable is still an imperative for mutual/cooperative insurers, and thinking commercially is a prerequisite for any successful, purpose-led leader. This is characterised by many of our leaders around the world, who embrace the competitive advantages of the mutual model within their organisations and the notion of “profit for purpose”, where financial goals are driven by purpose, rather than maximising profits.
I’m also noticing an increased interest from our members in member case studies and research that demonstrate superior, long-term performance compared to the rest of the insurance market; and providing a platform for mutual leaders to share and exchange how they successful position and market the unique value proposition presented by mutuality as an enabler of strategic growth.
Expanding horizons to grow the sector globally
Escalating world events have undoubtedly changed the face of leadership. Purpose-led leaders now accept that to achieve locally they must also think globally. Emerging markets, in my eyes, is where I see one of the greatest opportunities for our sector to learn from and to make a valuable contribution where it is so desperately needed.
The essence of mutuality comes from the idea of a collective coming together to share risks and provide protection to unserved or underserved communities – who, for whatever reason, cannot gain access (or affordable access) to existing insurance solutions. This is the reason many mutual and cooperatives were formed over the past 200+ years, and why many mutuals and member-owned insurance models are still being created in the present day.
Mutual microinsurance offers a proven and tested solution to bridge the insurance protection gap across some of the world’s poorest countries. Our research shows that, in these markets, the mutual/cooperative sector only holds a market share of less than 4%.
Despite regulatory challenges, there are numerous use cases where this community-based mutual model effectively serves vulnerable and low-income populations. Enabling an environment where mutual microinsurance can flourish will help strength the financial resilience and promote sustainable development in these communities.
Through the ICMIF Foundation, and our partnership with the United Nations Development Programme (UNDP), we hope to continue to enable ICMIF members to build a fairer, more resilient world. The UNDP ICMIF Insurance Innovation Challenge (IIC) Fund aims to promote innovative mutual microinsurance schemes in emerging markets, and we were pleased to announce the first four winning initiatives to strengthen the societal resilience and economic stability of communities in Kenya, Malawi and Sri Lanka earlier this year.
Transforming for the future
In an era of digital transformation, mutual and cooperative insurers are rapidly adapting to be able to effectively harness technology to enhance operational efficiency and customer engagement. A customer-centric approach, which prioritises member satisfaction, not only improves service delivery but also strengthens member loyalty and trust.
Moving to the topic of sustainability, many of our members are strong advocates for integrating sustainable approaches into business strategies as this is not just good for societal impact – it’s good business too. Connecting like-minded organisations, across our virtual forums and summits, allows us to empower members, to benchmark, measure and report their sustainability impacts.
Looking to what lies ahead in the future, I believe mutual and cooperative insurers will face challenges such as evolving regulatory frameworks, technological disruptions, and shifting consumer expectations. These challenges also present our members with opportunities to innovate, expand their market presence, and deepen their societal impact.
ICMIF’s role in advocating for mutual and cooperative interests and fostering global collaboration, means we can be a catalyst for our members to help them navigate complexities and thrive in a competitive landscape. We will continue to support our members to leverage these strengths, helping to ensure they remain resilient, relevant, and sustainable. Our aim is to do this by fostering a global community of mutual and cooperative insurers which are committed to ethical business practices and social responsibility, benefiting policyholders, communities, and the insurance industry.
Collaborating with purpose
The future of mutuality will be shaped by collaboration, innovation, and a steadfast commitment to member interests. Mutual and cooperative insurers are well-positioned to lead in creating a more resilient, inclusive, and sustainable insurance sector worldwide but as I shared during the Association of Financial Mutuals Conference last week, this is not an easy task and requires time and perseverance.
We are planning an amazing ICMIF Biennial Conference in Buenos Aires (Argentina) which will take place on 12-15 November 2024 and which will be hosted by ICMIF members: the Argentinean Association of Cooperative and Mutual Insurers (AACMS) and the Association of Insurers of the Interior of the Argentine Republic (ADIRA).
As the largest gathering of mutual and cooperative insurance leaders from across the world, we are excited to offer inspirational presentations, provocative panel discussions, and unrivalled peer-to-peer networking opportunities for our members. We already have 350 delegates registered to join us but we hope to welcome many more and invite you to register to join us at our flagship event and learn more about how we can shape a future where mutuality really will thrive.
