Each time ICMIF publishes its Global Mutual Market Share report, we receive numerous requests from members, policymakers, academics and media outlet for further data and insights into the scale and growth of the global mutual and cooperative insurance sector – highlighting the importance of conducting this comprehensive global analysis.
As the only research of its kind on the global mutual/cooperative insurance industry, we view this regular publication as an essential tool for our sector, not just for providing a snapshot of its current performance and impact, but also for understanding its future. This blog will delve into the significance of these reports, the meticulous research process behind them, and their broader implications for the industry.
Understanding the research
The Global Mutual Market Share reports include a detailed examination of premium income, assets, investments, employee numbers, and members/policyholders of over 4,700 mutual/cooperative insurance companies across 80 countries and territories.
This data is gathered from a range of sources, primarily from individual company’s annual reports, or from statistics reported by national financial regulatory bodies. Some market statistics are provided by other sources, US insurance market data, for example, is provided by AM Best, one of ICMIF’s Supporting Members.
Perhaps the most valuable metric given in these reports is the actual ‘mutual market share’, which is calculated by dividing the premiums written by the mutual or cooperative insurance sector (on a local, regional, or global level) by the total insurance premiums written in that same market. For instance, in 2022, mutual/cooperative insurers wrote USD 1.41 trillion in premiums, representing 26.3% of the global insurance market (an eight-year high for our sector).
Accordingly , a crucial contribution to these reports comes from Swiss Re, one of the world’s leading reinsurance companies and another ICMIF Supporting Member. Swiss Re’s annual world insurance sigma report (the latest edition of which was released earlier this month) provides the total market premium figures, which are essential for calculating the mutual market share. This collaboration ensures that the data used in the reports is both accurate and comprehensive, thus lending additional credibility and reliability to the findings.
Benefits of the research
The insights provided by the Global Mutual Market Share reports are invaluable for various stakeholders in the insurance sector. Regulators, policymakers, and industry leaders use these findings to make informed decisions. The figures from these reports are often cited in regulatory environments, including the UK Houses of Parliament in 2023, as the Co-operatives, Mutuals and Friendly Societies Act passed into law. The UK’s mutual market share data, as reported by ICMIF, was specifically referenced, highlighting the influence and importance of this research in shaping regulatory environments and implementing changes in the law.
We are regularly contacted by academics, third-party researchers, and consultancy firms requesting permission to share or cite our findings. ICMIF also accommodates frequent requests to provide further back-end data, which the Federation has been gathering exhaustively since 2007.
Moreover, the reports help mutual and cooperative insurers benchmark their performance, identify growth opportunities, and understand market trends. This data-driven approach supports the sector in maintaining its resilience, sustainability, and focus on community-oriented values.
Internally, understanding the size, performance, and direction of the sector also benefits ICMIF’s work as a Federation in representing its members’ interests. The local market and regional breakdowns which are shared as part of this report series are particularly crucial in appreciating the variety of our members’ experiences and challenges. Implementing this understanding in day-to-day work at ICMIF is crucial to our role as an international membership federation.
Unique contributions by ICMIF
ICMIF stands out as the only organisation conducting such comprehensive research on the mutual and cooperative insurance sector. While there are other valuable reports like the World Cooperative Monitor, which tracks the global cooperative movement, these do not focus solely on the insurance sector. ICMIF’s dedicated research fills this gap, providing insights that are crucial for understanding and advancing the mutual/cooperative insurance model.
The aforementioned World Cooperative Monitor 2023 report states that mutual and cooperative insurers represent 32% of the turnover (and 96 organisations) of the largest 300 cooperatives, operating in any sector, in the world. Mutual and cooperatives’ collective performance, as well as their performance as part of the global cooperative movement, will undoubtedly be highlighted further next year, as 2025 has been named by the United Nations (UN) as the International Year of the Cooperatives.
Challenges to the research
One challenge in this global reporting is applying a set definition of ‘mutual’ or ‘cooperative’ to thousands of organisations operating across the globe in varying legislative environments. Forty-five percent of countries have no local law for mutual or cooperative insurance, although many have community or member-owned risk pools to help provide affordable insurance solutions to unserved and underserved segments of the population.
ICMIF has been providing development support to its members in these markets for almost 60 years and in 2015 established a charitable organisation called The ICMIF Foundation. The Foundation’s strategy includes promoting risk reduction and risk prevention activities in low-income communities and working with community-based organisations to facilitate access to appropriate mutual microinsurance through financial education, infrastructure development and training.
As a result of the inconsistencies (or, in some cases, total lack) of mutual/cooperative insurance legislation worldwide, ICMIF’s research includes organisations whose legal status may not be classified as ‘mutual’ or ‘cooperative’ in their national law, but whose structure and values reflect the mutual/cooperative form, ie companies that are owned by, governed by, and operated in the interests of their member policyholders. These include limited companies owned by people-based organisations, fraternal benefit societies (fraternals), friendly societies, Takaful providers, reciprocals, non-profits, exchanges, discretionary mutuals, protection and indemnity (P&I) clubs, community organisations, associations, and foundations.
Extending the definition in this way has enabled us to include all organisations which operate on mutual/cooperative principles, in line with our research objectives, without being restricted by legal definitions of which there is a wide variety across the globe and of which some are particular to one country or organisation alone.
Another challenge is that the only figures that are available to make direct comparisons between the mutual and total global insurance sector are premium volumes. There are many other financial metrics that could be used to compare mutuals’ performance, efficiency, profitability, and solvency to that of the total market, but, without global figures, this is not possible at scale.
Mutual companies operate with far more in mind than just financial returns, and social impact is not as simple a metric to measure, which is why we’ve included multiple case studies in our last two Global Mutual Market Share reports.
This difficulty in measuring a mutual company’s strength is something that the Mutual Value Measurement (MVM), developed by the Business Council of Co-operatives and Mutuals (BCCM, Australia) was created to address. MVM is purposefully designed as a generic framework that can be customised by a cooperative or mutual to its local operating environment. At the core of the framework lies six key value drivers designed to measure mutual value; commerciality, shaping markets, member relationships, community relationships, ecosystem, and reciprocity.
Summary
The Global Mutual Market Share reports by ICMIF are a cornerstone for the mutual and cooperative insurance sector. They provide essential data and insights that drive decision-making, policy formulation, and strategic planning. The meticulous research process, combined with the collaboration with external stakeholders, ensures that these reports are both comprehensive and reliable. By highlighting the sector’s performance, promoting transparency, and supporting regulatory frameworks, these reports play a crucial role in fostering a resilient, sustainable, and community-focused insurance industry.
As we look to the future, the continued efforts of ICMIF in producing these reports will undoubtedly contribute to the growth and success of the mutual and cooperative insurance sector, ensuring it remains a vital part of the global insurance landscape.
We would love to hear more examples of how member organisations utilise ICMIF’s data on the global mutual/cooperative insurance sector. Please get in touch ([email protected]) and share any examples or suggestions for other ways that ICMIF can illustrate the strength and reach of our sector through financial data analysis.
