Service & value
Better value all round
Research by the Association of Financial Mutuals shows that in 2009 PLC insurers paid out on average 3p to shareholders for every £1 invested by their customers. With no shareholders to please, mutuals can ensure that their profits are only distributed to customers like you, or reinvested to give you better returns, better value and higher levels of service.
According to their customers, mutual organisations and friendly societies deliver a better service, really care about them and treat them more fairly than non-mutual insurers.* The Association of British Insurers (ABI’s) ‘Customer Impact Survey’ explored in depth the relationship a customer has with his or her life office.
The score for the industry as a whole fell from 52% in 2008 to 51% in 2009. For mutual insurers however the score was 58%, up slightly from 2008 and significantly higher than the industry as a whole.
The results overall show that during a harsh economic and business climate, mutuals continue to work hard to improve customer experiences. What’s more, mutuals are seen as less risky during times of adversity and an increasing number of customers are recognising the value of mutuality - by placing their hard-earned cash with organisations that are in business to serve their best interests without the possible conflict of securing the interests of shareholders.
* According to research amongst over 20,000 life insurance company customers, of whom around a third were customers of a mutual.
Good to know
Customers of mutuals have a higher opinion of the industry as a whole - 52% of mutual customers compared with 48% of the customers of non-mutuals.
What are mutuals saying?
“Mutuals are all about helping people to help themselves. Risk is pooled in these organisations and members share the benefits and profits of their mutual trade.”