Mutual and cooperative insurers have significantly outperformed the total insurance market since the onset of the global financial crisis of 2007-08, according to the latest research from the International Cooperative and Mutual Insurance Federation (ICMIF).
The mutual and cooperative sector is the fastest-growing part of the global insurance market since the financial crisis.
The fifth edition of Global Mutual Market Share 2011, ICMIF’s annual publication on the size and performance of the global mutual and cooperative insurance industry, highlights how the mutual/cooperative sector has continued to be the fastest-growing part of the global insurance market since the financial crisis.
Premium income of mutual and cooperative insurers increased by 26% in the period between 2007 and 2011, as the total insurance market had only grown by 11.2% during the same period. As a result, the global market share of the mutual/cooperative sector increased from 23.6% in 2007 to 26.7% in 2011.
The mutual and cooperative sector has greater levels of trust and satisfaction
Shaun Tarbuck, ICMIF CEO, suggests that the growth witnessed by mutual and cooperatives insurers is down to the greater levels of trust and satisfaction which they engender among customers. “There has been a growing disillusion in shareholder-owned banks and investment institutions following the financial crash. Some of the world’s oldest insurance companies are mutuals or cooperatives and their approach is to take a longer-term view to protect the interests of the business and their customers,” he says.
Life and Non-life insurance are performing well
ICMIF’s research finds that consistent growth in life business by mutual and cooperative insurers contributed most significantly to the overall increase in their share of the global market, as life market share increased from 20.8% in 2007 to 25.1% in 2011. However, mutual and cooperatives hold a higher share of the total non-life insurance market, with a global market share of 28.9% in 2011(up from 27.7% in 2007).
About the ICMIF Global 500
The ICMIF Global 500 for 2011 is a member-only, definitive list of the world’s 500 largest mutual and cooperative insurers in terms of premium income for 2011 year end. The sample size of this year’s analysis has been extended to include 3,300 mutual/cooperative insurance companies from 77 markets (up from 2,900 companies in 75 countries in the 2010 report).
The 500 largest insurers have been ranked by premiums, with a more detailed analysis of the twenty largest, for life and non-life insurance business, and the fastest-growing companies.
The Global 500 report is solely available for members of ICMIF. To download the report please login or register.