The Report follows vocal support for mutuals in the Chancellor’s Mansion House speech where Rachel Reeves committed to supporting the sector via the launch of an industry-led Mutuals Council to drive growth, and she requested the Regulators to report on the mutuals landscape in 2025.
This builds on the Government’s manifesto commitment to double the size of the co-operative and mutual sector. The FCA has also welcomed the Government’s focus on financial inclusion as a driver of economic growth with around 14 million adults in the UK holding less than £100 in savings.
Broadstone’s Report highlighted three areas where mutual life insurers could focus to deliver on this opportunity:
• Evolving customer needs: cost of living and health service pressures are increasing demand for insurance products which is exacerbated by the advice and protection gap creating an under-served market.
• Societal needs: developing sustainable and socially oriented insurance products can help address savings and protection gaps and improve health and wellbeing for a population that is more socially aware.
• AI and transformation: mutuals have the opportunity to improve efficiency and manage the cost base by harnessing generative AI.
Ewen Tweedie, Actuarial Director at Broadstone’s Insurance, Regulatory & Risk division, said: “The mutual life insurance sector is well positioned to seize a significant growth opportunity thanks to their unique member-led solution to financial services delivering strong societal benefits.
“The Government has committed to doubling the size of the mutual sector which will be achieved by driving efficiencies through new technologies while leveraging a connection to local communities which can unlock benefits for new customer bases.”
Please see the attached press release for all the details, get in touch with any questions and the full report can be found here:
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