Mutual companies are member-owned, public companies. Members are customers, who are also owners of the Mutual.
An Aggregate Deductible Fund (ADF) is a self-insurance pool of funds that is commonly used by buying groups to manage their risks. Buying groups are formed by collectives of companies, community groups, religious institutions, sporting organisations and others who group together because they have similar insurance needs.
A Discretionary Mutual is a mutual organisation that provides an insurance-like product known as risk protection.
A Mutual is a business structure that places customers at its heart. While many organisations claim to put customers at the centre of everything they do, with a mutual business structure it’s a fundamental part of the legal structure.
It was August, 2015. Playing weekend sport with friends, my right Achilles tendon ruptured and snapped completely. I couldn’t walk at all. In pain, but grateful for my income protection policy, I called my insurance company to submit my claim. It was denied based on an administrative error.
Most consumers think of insurance as large multinational corporations, with their brand names on skyscrapers. This corporatised, publicly-listed model of insurance is where most of us go to buy cover for a house or car, because that’s the most obvious option and in many cases the only option.