Future proofing the UK mutual insurance sector
The need to think strategically
There have been seismic changes in the economic and regulatory environment over the last three years. This has had an impact on all parts of the financial services industry, and the mutual insurance sector has not escaped.
The sector is at a crossroads where it needs to examine its structure and purpose in order to identify the critical success factors to secure its future. There is no doubt that difficult decisions lie ahead.
Recent history has not been encouraging and the traditional mutual model is under threat. We predict significant shrinkage in the number of organisations in the sector over the next ten years.
This paper reviews the factors which contributed to the current position of the mutual insurance sector, the drivers for ongoing transformation and the resultant challenges mutual insurers are likely to face. In light of these challenges we also assess the future of the sector and the options that individual mutuals can adopt to survive.