19 December 2022
Signatories make a voluntary commitment to eight principles – adapted from those of the international co-op movement
The BCCM has unveiled a Code of Conduct to govern the use of Discretionary Mutual Funds (DMFs), which it says will set “a clearer framework for affordable risk protection across the Australian economy”.
There has been a renewed interest in DMFs as a substitute for conventional insurance in response to surging premiums and a series of natural disasters.
BCCM CEO Melina Morrison said regular economic cycles and shocks, as well as longer term environmental and social trends, are making risk management more challenging.
“As insurance markets harden, an increasing number of sectors across the economy are being impacted by a lack of access to appropriate risk protection,” she added. “DMFs offer an alternative, providing financial protection in the event of a broad range of property loss or damage and third-party liabilities.”
DMF products differ from traditional insurance contracts because the cover is provided on a discretionary basis, with fund members having a right to have their claim considered but no automatic, contractual right to indemnity.
Responding to a request from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), the BCCM today launched a guide on Principles, Code of Conduct and Good Practices for DMFs.
Read the full article, BCCM releases new code of conduct for discretionary mutuals, Co-operative News, 19 December 2022