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.

Latest news

04 December 2023

BCCM CEO disappointed by the ACCC’s decision

Coles expects its acquisition of two state-of-the-art automated milk processing facilities from Saputo Dairy Australia will be completed in the first half of next year
01 December 2023

Are co-ops the answer to Australian housing crisis?

Housing affordability in Australia has been a hot topic for some time, recently flaring up due to massive rent and housing price increases post-COVID-19 lockdowns.
29 November 2023

Push to consider co-operative housing to ease crisis

Melina Morrison spoke with Patricia Karvelas on RN Breakfast about today's co-operative housing roundtable at Parliament House.