Mutual benefits: in the rush to DMFs, core principles must not be forgotten

24 April 2023

By Melina Morrison, CEO of the Business Council of Co-operatives and Mutuals

It comes as no surprise that there has been a surge of interest in Discretionary Mutual Funds (DMFs) as business owners in “hardening” insurance markets seek alternative sources of risk cover.

A number of industry associations operating in the leisure and entertainment industries have signalled intentions to launch DMFs, acting in response to reports from members of up to four-fold insurance premium increases that threaten their livelihoods.

But in the rush to find solutions to the soaring cost of traditional insurance, there is a risk that one of the core values of mutuality – member control – is being overlooked.

DMFs are not a panacea for the perils of economic cycles, natural disasters and extreme weather events and shocks (such as the war in Ukraine) that can add to the normal challenges of risk management…

Read Melina’s full article Mutual benefits: in the rush to DMFs, core principles must not be forgotten, in Insurance News, 24 April 2023.

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