The International Cooperative and Mutual Insurance Federation (ICMIF) today announced new statistics confirming the increasingly positive socio-economic impact of the global mutual and cooperative insurance industry. The publication of the latest ICMIF Global Mutual Market Share report confirms another year of strong financial performance for the mutual and cooperative insurance sector.
At a global level, mutual and cooperative insurers reported record aggregate premiums volumes for the seventh consecutive year in 2014, writing USD 1.3 trillion in insurance premiums. Since the onset of the financial crisis in 2007, mutual and cooperative insurers have grown their premium income by 30% (2007 to 2014), whilst the total insurance market only grew by 13.6% during the same period. As a result, the global market share of the mutual/cooperative sector increased from 23.7% in 2007 to 27.0% in 2014.
These latest figures from ICMIF form part of the Federation’s Global Mutual Market Share research, a market intelligence report on the size and performance of the global mutual and cooperative insurance industry. This research by ICMIF features an analysis of the premium income, assets and investments of 5,000 mutual and cooperative insurance companies from 77 countries around the world.
Commenting on the report, Anders Sundström, Chair of ICMIF, said “The mutual and cooperative insurance sector has maintained strong levels of financial growth and market share in 2014 across the vast majority of insurance markets. These figures help us to promote cooperatives/mutual insurers as preferred insurance providers, and demonstrate their contribution to long-term socio-economic growth.”
Shaun Tarbuck, Chief Executive of ICMIF, commented how the increase in mutual and cooperative insurers’ market share since the start of the global financial crisis highlighted the strong benefits of the mutual and cooperative business model. “There has been a shift in consumers’ buying behaviour since the financial crisis, and this has given the mutual and cooperative insurance model a competitive advantage against shareholder-owned insurance companies. Mutual and cooperative insurers tend to have a greater level of trust and customer satisfaction associated with them, as their intentions are closely aligned with that of the policyholder (their members). Also, mutual and cooperative insurers benefit from a long term perspective and can be run to protect the interest of the business and its customers, unlike joint-stock companies, which are under pressure to generate short-term profits for external shareholders.”
Mr Sundström added, “This latest statistical research clearly demonstrates the mutual and cooperative sector’s socio-economic relevance; it is a sector committed to putting people and the planet before profit, and to protect lives and livelihoods”