Member Engagement

THE 2023 MUTUAL FACTOR

During the association’s 128th annual convention, NAMIC released its annual report on the state of the mutual insurance industry. The 2023 Mutual Factor, produced in partnership with Aon, provides an updated look at more than 30 different performance metrics designed to illustrate how the mutual segment is doing in relation to other non-mutual companies.

The 2023 Mutual Factor report provides a sobering look at a challenging period from the start of 2022 through the first part of the current year. During this time frame, the mutual insurance industry faced increasing pressures from weather and reinsurance factors, yet it has remained focused on its policyholders. The last report highlights the strong capital position of the mutual segment, despite external challenges, once again demonstrating the industry’s continued commitment to strengthen balance sheets to support policyholders and the broader economy.

SCENARIO TESTING OUR MUTUAL FUTURE

In a world forever changed by the COVID–19 pandemic, mutual property/casualty insurance companies of all sizes are facing increasing pressure from stakeholders to consider the impact of systemic scenario testing on their financial forecasts. Understanding how the many different scenario tests can impact their financial performance is critical to their long–term strength and stability, which, in turn, is critical to each mutual company’s ability to serve its policyholders.

In support of this consideration, NAMIC and Guy Carpenter have collaborated to develop a series of reports designed to measure the exposure of each U.S. property/casualty (P/C) insurance company to a set of pre–defined operating environments. From 2021 through 2023, the two will investigate how various scenarios, expected and unexpected, will impact mutual companies.

SCENARIO TESTING OUR MUTUAL FUTURE – YEAR TWO

As industries around the globe face growing political, economic, and environmental challenges, the mutual property/casualty insurance industry remains a strong and vital pillar of the economy.

To understand the effects of current market forces on the mutual insurance industry, NAMIC and Guy Carpenter have collaborated to provide prospective risk assessments across a range of realistic scenarios of concern for the industry: increased hurricane severity; elevated severe convective storm activity; a large scale cyber event; inflation; and stagflation.

The report assesses how different risk exposures affect financial results, a key mandate for leaders of today's mutual industry as the market focus has shifted from return on capital to return of capital. Managing across sources of risk to grow and protect business while simultaneously maximizing value for policyholders is the inherent challenge for any mutual insurer, and NAMIC is proud to provide the tools to help members stay ahead of risks on the horizon.