We are proud to have collaborated with the Business Council of Co-operatives and Mutuals (BCCM) in producing the inaugural Discretionary Risk Mutuals Pulse Check 2024.
This comprehensive report sheds light on the role discretionary risk mutuals play as an alternative to traditional insurance, highlighting their growth, governance practices and capacity to address emerging challenges in risk protection.
Co-authored by Charmian Holmes, Partner at Hamilton Locke, and Anthony Taylor from BCCM, the Pulse Check provides valuable insights for policymakers, mutuals, and the wider community. It explores key trends, including membership growth, the innovative use of Mutual Capital Instruments, and the sector’s resilience in addressing hard-to-place risks.
Key findings include:
- Australian discretionary mutuals serve over 50,000 businesses and individuals, with $370 million in combined contributions.
- A surge in new mutual formations over the past five years, fueled by innovative approaches and tailored products, including for the gig economy.
- Strong capital management practices, with 100% of mutuals reporting reinsurance arrangements and the majority reporting surpluses reinvested for members’ benefit.
Charmian Holmes notes, “This first Pulse Check underscores the sector’s critical role in offering tailored risk solutions. The insights gathered will help foster informed decision-making and further support for this essential alternative to traditional insurance.”
At the launch of the report at Parliament House in Canberra yesterday, the BCCM was joined by Louise Miller -Frost-Miller MP and the Hon Stephen Jones, Minister for Finance to explore how discretionary risk mutuals might help to solve insurance affordability for businesses and community groups.
For further information, download the full Discretionary Risk Mutuals Pulse Check 2024 here.
