We have seen participants in this sector cross-selling the products of others, either to plug a gap in their own offering or to simply broaden the offering available to their members.
Ideally, these products are provided by another mutual, ensuring continuity of the intrinsic mutual ethos, but in some instances, they are simply rebranded offerings from corporate insurers.
Nexus Mutual and The Retail Mutual
Recent developments have seen this going a step further, with crypto mutual nexusmutual.io/ (which several PLL staff helped to create) agreeing to provide discretionary excess and aggregate risk transfer support to theretailmutual.com/.
Nexus Mutual has accumulated capacity beyond its own needs, which it is seeking to deploy elsewhere within the mutual sector (given the inherent alignment of interests). The Retail Mutual previously purchased these excess layer and accumulation covers from within the corporate insurance environment.
It is good to see mutuals working together like this, where income and profitability are recycled and retained within the mutual and co-operative sector for the benefit of their respective membership bases.
Fostering Transparency and Fairness
The Secretary of State for Levelling Up, Housing and Communities recently expressed his concern at the “role of commissions in significant premium increases” and asked the FCA to “take immediate enforcement action against those brokers … that cannot demonstrate their commissions represent fair value”.
In doing so he has shone a light on “unfair practices” and “secret commissions”, and in this context and as a contrast the benefits of the direct relationship members typically have with their mutual. Along with the transparency which comes through ownership and control, the case for mutuals has never been more relevant and compelling.
David Gudopp
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