Mutual insurers manage the savings, pensions, protection and healthcare needs of over 26 million people in the UK and Ireland, according to a recent report by the Financial Conduct Authority (FCA). Released on 5 December, the Mutuals Landscape Report also points out that mutual insurers in the UK and Ireland collect a joint annual premium income of over GBP 23 billion.
According to the report, UK mutual insurers account for 6% of total assets, and 5-6% of total premiums of the insurance sector. The number of mutual insurers in the UK has decreased by 39.6%, from 154 in 2016 to 93 in 2025. The report attributed this drop to the exit of the smallest mutual insurers.
The report also highlights some of the challenges faced by smaller mutual insurers, such as issues of economies of scale and business model sustainability, particularly considering rising operational costs.
The report confirms that a joint Prudential Regulation Authority (PRA) and FCA Scale-up Unit will be set up to provide regulatory support to eligible firms, including mutuals, looking to grow rapidly.
The FCA has also launched a dedicated Mutual Societies Development Unit (MSDU), which will support the sustainable development of the mutual societies model and provide a dedicated point of contact for support and insight. MSDU will engage with a range of stakeholders, including policymakers, trade associations, think tanks and researchers to share insight from its data, provide technical input, connect those in the wider cooperative and mutual ecosystem.
The Association of Financial Mutuals (AFM), an ICMIF member, welcomed the report and the joint FCA and PRA Scale-up Unit.
“We welcome the PRA and FCA’s recognition of both the mutual sector’s vital role in the UK economy and its significant growth potential,” said Andrew Whyte, AFM Chief Executive. “It’s also good to see the regulators’ commitment to a tailored regulatory approach that enables mutuals to compete effectively alongside firms with traditional corporate structures.
“The introduction of the joint FCA and PRA Scale-up Unit is a positive step forward, which can help mutuals to make the most of opportunities to grow within an enabling regulatory framework.
“This report outlines practical measures the regulators plan to take to support the sector and is an important first step. Together with our members, AFM looks forward to continuing to work with both regulators to turn their good intentions into action, strengthening the sector and enhancing the UK’s financial resilience,” he concluded.
