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Thread: New Mutual

  1. #1
    Contributor 1User
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    New Mutual

    I don't think it will excite many but with so little news here I will mention the new Military Mutual:

    http://www.telegraph.co.uk/finance/p...personnel.html

    Claiming to cater to the car and buildings insurance needs of Military personnel, it will be a "discretionary Mutual" meaning it is owned by the members but funded by the European Builders Re. This is because any new Mutuals need to find £1 million before they can independently offer insurance. Hence the previous most recent Insurance Mutual arrived in 1999 but doesn't serve the public.

    The most recent Mutual Building society for savings was the Ecology from 1981 although not long ago National Counties launched the Family Building Society as a "spin off" - branding exercise.

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    planteria likes this.

  2. #2
    Expert planteria will become famous soon enough
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    doesn't discretionary refer to the idea that some payments will be made to members dependent upon the discretion of staff at head office?

  3. #3
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    This website

    https://www.actuaries.org.uk/system/...esentation.pdf

    (Looking at a sharia compliant insurance model) discusses the concept of a discretionary mutual and says:

    Discretionary Mutuals are operational in the United Kingdom(e.g. Military Mutual) and Australia.

    A Discretionary Mutual pays claims at the discretion of its Board
    .

    I would interpret that as the mutual can decide not to make payments under a policy held with it.

    My curiosity piqued I glanced at the actual Military Mutual website and they push the alternative version (which is not 'mutually exclusive' - no pun intended, I cannot think of a better expression) that they can choose to make additional payments to policy holders or payments beyond what the policy requires.

    Sounds like one of those things which is fantastic in theory...

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  4. #4
    Expert planteria will become famous soon enough
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    yes, exactly as i thought.. some mutuals pay out based on agreed terms. but also offer additional benefits, by discretion. in my limited experience it works well.


 

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