Benefits of mutual insurers relayed to the Senate inquiry

08 July 2015

Regis Mutual Management, a BCCM member, has informed the Senate inquiry into cooperative, mutual and member-owned firms. In their submission to the inquiry, Regis stated mutual insurers and member-owned businesses drive competition and provide a remedy when the market fails.

Regis CEO Gerald Ewing, a member of the Northern Australia Insurance Premiums Taskforce, has proposed legislation to allow a special class of investor-deferred shares for mutuals, to enable them to raise capital. Regis specialises in establishing and managing mutuals in Australia and in the UK.

Mr Ewing says encouraging sectors or groups to form mutuals can prevent calls on governments if markets fail. “Mutuals can form the model for insurance protection currently provided by government to be transferred to community ownership,” he says.

And Unimutual, which is managed by Regis, has told the same inquiry that the discretionary mutual model can enable an industry to get commercial insurance at an affordable price.

Unimutual is owned by 27 universities and 25 associated entities such as research institutes and residential colleges, and says it covers risks no other insurer will meet, such as for research material.  An independent study found Unimutual achieved a 12% saving over the cost of conventional insurance.

(Photo credit: Got Credit)