Mutual Insurance Case Studies: Enhancing Business Stability
Download Now For Free Discover the Benefits of Discretionary Mutuals for Your Business Are you looking to achieve operational efficiency, ...
Discover the mutual benefits of collaboration as members pool their requirements and work collaboratively in a mutual or co-operative. While these entities typically operate independently, the synergy created fosters mutual benefits for all involved.
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.
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.
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.
Prospect is a multi-disciplinary practice with specialist expertise in the energy and environmental sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, insurance and risk management specialists, and finance experts.
This article remains the copyright property of Prospect Law Ltd and neither the article nor any part of it may be published or copied without the prior written permission of the directors of Prospect Law.
This article is not intended to constitute legal or other professional advice and it should not be relied on in any way.
Further Reading
Download Now For Free Discover the Benefits of Discretionary Mutuals for Your Business Are you looking to achieve operational efficiency, ...
Last month the government introduced the Job Retention Scheme, to help employers affected by the Covid-19 pandemic. The scheme introduced ...
We are excited to announce the appointment of Rikul Patel as Head of Mutual Development in our Insurance, Mutual, and ...
Mediation or conciliation: Are they two different dispute settlement mechanisms or are they the same? Our international arbitration specialist Eric ...
Our latest article for Wind Energy Network Magazine focusses on the fast tracking measures included in the UK Government's Energy ...
Some years ago I was asked by a client from the oil and gas industry to produce a risk assessment, ...