AFM announces new partnership project with Whitecap Consulting

8 April, 2021

The Association of Financial Mutuals is undertaking a strategic review of the future of the sector, in association with Whitecap Consulting.  We are inviting potential sponsors to contribute to this important new project. Read more

AFM’s CEO comments on the demise of a stalwart of member-ownership

25 March, 2021 – Read more


Mutuals paid out £36m in IP claims in 2020

17 March, 2021

Research from Association of Financial Mutuals (AFM) shows paid claims volume increased 38% compared to last year. Read more

What is financial mutual and why should you consider joining one?

In an article published in the i on 11 January 2021, AFM CEO provides expert advice on businesses owned by customers: Read more

Child Trust Funds: five tips on what to do with the money

1 September, 2020

Most of the around 55,000 young people turning 18 in September will enjoy an unexpected and worthwhile birthday present: the Child Trust Fund (CTF). This scheme was launched by the government in 2005 and the first funds will be available to spend or re-invest this year.

The average CTF will be worth over £1,000, but many accounts will hold significantly more than that. And while the temptation might be to spend the money on a car, a holiday or to pay off bills, recent research from OneFamily, the largest provider of CTFs, shows that most young adults are inclined to invest the money to build up a future nest egg.

Young people are also likely to look for help on what to do with the money from their parents, grandparents or guardian, so here are five tips on guiding them to make the right decision.

What are healthcare mutuals doing to create new value?

17 August, 2020

Insurers and cash plan providers are innovating in response to the pandemic, says AFM’s Martin Shaw in an article published in COVER Magazine

AFM statement on protection insurance and coronavirus, July 2020

Member organisations of the Association of Financial Mutuals assess each application for income protection on an individual basis, focussed on the applicant’s health, medical history and the severity of any symptoms at the time.  In reviewing an application, a mutual will ensure it complies with the Equality Act, to ensure the outcome of an underwriting decision is fair and appropriate.

Amongst AFM members, in 2019 more than 95% of claims received were paid.  For a mutual, underwriting is the first stage in the claims process: in other words, by taking care in the underwriting process to take full account of the medical history and circumstances of the individual at application stage, the policyholder can reasonably expect that a valid claim in the future will be paid, assuming the usual policy conditions are met.

Underwriting is a source of competition between insurers, and each develops its own underwriting philosophy based on its risk appetite.  As a result, in the early stages of the pandemic, many mutual insurers responded cautiously to the unknown consequences of Covid-19.  Exclusions were introduced, consistent with the Equality Act, to protect the existing membership.  As the worst effects of Covid-19 begin to fall away, mutuals are beginning to carefully explore how they can relax some of their exclusions and policy changes.

New research from AFM shows mutual providers continue to lead the way in paying claims

In 2019, Mutuals paid out on 19 of every 20 income protection claims. Read the full article here

Mutuals put their money where their mouth is with £26m IP claims spend in 2019

Read the full Health Insurance and Protection article here

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