Mutual Life Assurance

Mutual Life Assurance Companies in the UK

Mutual life assurance is a type of insurance wherein the policy holders also have some sort of ownership rights in the corporation. These rights usually give the policy holders the power to vote for the organization’s management, as well as participate in the distribution of assets should the organization go out of business. The International Cooperative and Mutual Insurance Federation is the industry’s global trade association and it boasts 206 members from a total of 72 countries, which represents more than 400 insurance companies.

Although mutual assurance may have started out in the US, there are already a lot of renowned companies that have operations in the UK. Here are a few of the companies that have become more popular in one way or another.

The Equitable Life Assurance Society

The Equitable Life Assurance Society or simply Equitable life is a UK-based life assurance company that was established in 1762. It has somewhat of an infamous reputation in the UK because of events in the year 2000 that almost led to the company’s collapse. After a two and a half-year investigation made by UK treasury-commissioned Lord Penrose, the findings reported that Equitable cut the retirement savings and pensions of its policy holders in order to remain afloat. This of course caused an outcry not only from its policy holders but from the whole of the UK as well.

NFU Mutual

NFU Mutual or the National Farmers Union Mutual Insurance Society is another popular mutual life assurance company in the UK. Owned by its policy holders instead of any shareholders, this corporation offers both general and life insurance. It has its headquarters in Warwickshire and has close ties with the National Farmers Union. In the UK, NFU Mutual provides investments, savings, annuities, and pensions along with motor, liability, and property insurance. This company is renowned for its dominance in the agricultural areas of the UK.

Liverpool Victoria

More commonly known as LV, Liverpool Victoria is the UK’s largest mutual life assurance company with more than 1 million members. General insurance, investments, and banking are some of the services offered by LV but they are best known for their life assurance products.

LV’s life assurance policies include pensions, with-profits assurance, and term assurance. The company is also renowned for its flexible equity release schemes and retirement solutions. It does however have its fair share of controversy as it was criticized as having “serious and widespread compliance failings” by the Personal investment Authority in 1999. GP