02 May 2023
Quoted in Insurance News today: The Business Council of Co-operatives and Mutuals submission calls for reforms to reflect that sector’s contribution and benefits, and argues that demutualisation over decades has reduced the diversity of many industry structures.
“The Australian insurance industry is a good example of this and has suffered a major loss of diversity through demutualisation, with many former mutuals now part of large merged insurance groups,” it says.
The group says policies should encourage the development of co-operatives and mutual enterprises (CME) in areas where they have an important role to play or provide services not otherwise provided.
Policies should also support capital access and retention in CMEs, regulate them on equal terms, and ensure their registration is as rapid, simple and affordable as possible, it says.