September 2024
Following a review of the AFM Corporate Governance Code in early 2024, a working group was set up to determine how to support members in the way they apply the AFM Code.
The resulting Guidance For Boards, draws on a range of sources to set out good practise, and to reflect changes in expectations on mutuals since the AFM Code was launched in 2019.
To read the guidance, click on this link: Guidance For Boards.
23 July 2024
The majority of Solvency and Financial Condition Reports (“SFCRs”) for 2023 have now been published and, as in previous years, AFM Associate Member Broadstone has produced a helpful and clear summary and analysis of various metrics using the publicly available data for AFM members and other firms of a similar nature and size.
In total, 29 insurers are included in the analysis, the majority of whom are AFM members. Key points in the analysis include the following.
Commenting on the publication of the report, David Gray, Senior Consultant Actuary at Broadstone, said: “We are pleased to publish our third report on solvency disclosures in the mutual sector.
“Mutuals play a vital role in our financial services ecosystem, providing customer-centric access to a greater range of insurance products often at more affordable rates.”
To read the full report click here
Together with our partners ABCUL, BSA and Co-operatives UK we have published our joint prospectus ahead of the next General Election, outlining how co-operatives and mutuals can help the next government tackle the biggest challenges: economic stagnation, inequality and insecurity, and the climate emergency.
Co-operatives and mutuals are an increasingly significant contributors to the UK economy, with the latest research finding combined annual revenues equating to 3.5% of UK GDP. They are already delivering numerous benefits, including:
Working together we are reaching out to all parties, setting out what these businesses have to offer society and urging that the next government create the conditions for further mutual growth by:
You can read the joint prospectus here: The Purpose of Mutual and Co-operative Business in Society
10 October 2023
The international mutuals trade body has published its latest report on the UK mutual insurance market. This reports that UK mutual insurers wrote £ 23.5 billion in premium volume and served a record 25.5 million member-policyholders in 2022.
This means the sector held 8% of the UK market in 2022 (down from 8.7% in 2021). Assets held increased to £187 billion. To read the full report, click on this link:
28 September 2023
A report launched today by AFM Associate member Broadstone (OAC) looks at the contribution made by mutuals to supporting health and wellbeing in the UK.
Their analysis concludes that mutuals generate almost £1 billion a saving a year (£956 million in 2022), and that these benefits are shared by the NHS, the Welfare State and employers. AFM has referenced this sizeable contribution in its reports to HM Treasury’s consultation on Occupational Health incentives, to argue for changes to the tax treatment of Health Cash Plans: https://financialmutuals.org/wp-content/uploads/2023/02/AFM-response-to-HMT-consultation-on-Occupational-Health.pdf.
As the introduction to the Broadstone (OAC) research states:
“Our report looks at the valuable contribution to public health finances given by the mutual and not-for-profit sector through the provision of health protection policies to employers and individuals. Most of these organisations are long-established with a strong heritage of protecting workers from the impact of ill-health, unemployment or old age.”
To read the report in full, click here: Broadstone Regulatory Risk And Advisory Limited (OAC Rebrand 2024)_Mutuality_health and wellbeing in the UK.
27 September 2023
Launched by Cooperatives UK, this is the first and only comprehensive report on the UK’s democratic economy, which represents all those businesses and organisations that give people, collectively, genuine control and ownership – co-operatives, mutuals, employee-owned businesses and friendly societies. To view the report, click on this link: Coops and Mutual Economy 2023.
Some of the key findings are:
July 2023
The majority of Solvency and Financial Condition Reports (“SFCRs”) for 2022 have now been published and, as in previous years, AFM Associate member OAC has helpfully produced a summary of various metrics using the publicly available data for AFM members and other firms of a similar nature and size.
27 insurers have been included, with total assets of £9.8bn, the majority being members of AFM, and a summary of key metrics is outlined below:
For the full report, click here.
This article was produced using AI tool Notion AI, and is one of a series we are developing (see: What does FCA’s Consumer Duty mean for NEDs?). The article was generated by posing the initial question, and a number of follow-up questions, as shown in the text; otherwise, no changes have been made to the text, even to correct the- what I consider annoying- ubiquitous spelling of words with z’s rather than s. If you have any comments, please contact the human collaborator, [email protected].
An organization that prioritizes the happiness of its customers and employees over profits would look vastly different from the traditional corporate model that prioritizes profit maximization. Such an organization would focus on creating a positive and supportive work environment that fosters employee satisfaction and well-being. This could involve offering competitive salaries and benefits, opportunities for career development and growth, and a culture that values employee input and feedback…
For the full article, follow this link: Suppose an organisation could focus on maximising happiness for customers and employees, 0323
Woking with our international sister trade body, ICMIF, we looked at the market share of mutuals in the UK in 2021. This showed mutuals manage over £200 billion, on behalf of around 32 million customers, and have a market share of 7.9%.
For the full report, see: https://financialmutuals.org/wp-content/uploads/2022/10/UK-Market-Insights-2022.pdf
December 2022
In the summer of 2022, AFM Board members joined over 700 other business leaders in contributing to a survey into how well businesses are adapting to AI. The resulting (first of its kind) report, compiled by Sue Turner, NED at Cornish Mutual, was published last week. You can read the full 2022 AI Governance Report here: https://financialmutuals.org/wp-content/uploads/2022/12/2022-AI-Governance-Report-c.pdf
The majority of Solvency and Financial Condition Reports (“SFCRs”) for 2021 have now been published. As we know, the majority of readers of the SFCR for non-listed insurers tends to be other insurers and consultants. Well, now you don’t need to, as AFM Associate member OAC has produced a summary of various metrics using the publicly available data for AFM members and other firms of a similar nature and size.
The data, using the reported SFCR only, covers 27 insurers where a published SFCR is available. Each insurer’s name is shown alongside the relevant data for that organisation, to aid comparison and contextualise the results.
Amongst the fascinating findings about the financial position of the sector, OAC estimates that the proposals from Treasury to amend the risk margin could release up to £150 million amongst the group.
To read more, follow SFCR Analysis_2021.
18 November, 2021
A report published today by the Association of Financial Mutuals and Whitecap Consulting highlights the key areas of current and future focus for mutual insurers and friendly societies, and provides a set of strategic considerations for the CEOs and boards of these organisations.