AFM UPDATE AFM UPDATE, JUNE 2016 2015: A YEAR OF CHANGE 2014: AFM - - PowerPoint PPT Presentation
MARTIN SHAW, 14 JUNE 2016 AFM UPDATE AFM UPDATE, JUNE 2016 2015: A YEAR OF CHANGE 2014: AFM Board established new Strategy Committee to explore strategic options mutuality a core theme, but expressed differently in each member, making
MARTIN SHAW, 14 JUNE 2016
AFM UPDATE, JUNE 2016
2015: A YEAR OF CHANGE
▸ 2014: AFM Board established new Strategy Committee to
explore strategic options
▸ mutuality a core theme, but expressed differently in
each member, making coherent programme difficult
▸ 2015: began discussions with other trade bodies,
including BSA, ABI and ILAG about merging
▸ AGM agreed need to change, and to determine
approach via an EGM in November 2015
AFM UPDATE, JUNE 2016
OUTCOME OF EXTRAORDINARY GENERAL MEETING
▸ Extra-ordinary in every sense ▸ ‘popular’ vote in favour of merging into ABI ▸ significant minority of @ 20 small members rejected ▸ consensus to meet again in January to set out approach
for a ‘newAFM’
▸ By end of December, 38 members had agreed to remain
with AFM, achieving momentum needed to carry on
AFM UPDATE, JUNE 2016
COMPOSITION OF AFM MEMBERSHIP TODAY
▸ AFM members
manage around 5 million policies
▸ AFM member
market share of 0.5%
25 50 75 100 125 2015 2016
health and protection general insurance life and pensions
AFM UPDATE, JUNE 2016
WHAT HASN’T CHANGED
▸ mutuals still focused on delivering in
best interests of customers
▸ mutuals growing market share ▸ politicians still supportive of mutual
business model
▸ regulators still confused about
mutual business model
▸ still lots of work for a trade body
committed to representing the mutual sector…
AFM UPDATE, JUNE 2016
WHAT NOW FOR AFM?
▸ a renewed focus on the needs and interests of smaller mutuals ▸ changes to the constitution, priorities and organisational structure ▸ selective engagement with larger mutuals: tax, dormant assets, capital ▸ budgeting challenges, but need to show value for money is undiminished
“WE PROMOTE THE CONCEPT OF MUTUALITY BY HELPING OUR MEMBERS IDENTIFY WITH, REMAIN COMMITTED TO AND CONTRIBUTE SIGNIFICANTLY TO MUTUALITY, THROUGH THE PROMOTION OF BEST PRACTICE AND A COMMITMENT TO WORKING TOGETHER AND IN THE INTEREST OF MEMBERS, CUSTOMERS AND OTHER STAKEHOLDERS.”
AFM UPDATE, JUNE 2016
AFM PRIORITIES (1)
▸ Training and development support
to members, through events including the AFM conference, and through effective networking of members
▸ Maintaining regulatory compliance
and communication with the Regulators
▸ Demonstrating a commitment to
high standards of governance
AFM UPDATE, JUNE 2016
AFM PRIORITIES (2)
▸ Seeking further opportunities to work
together as a sector, to improve efficiency, to spread the adoption of good practice, and to deliver better value to customers.
▸ Maintaining a strong focus on the
Association’s income, and on de delivering value to members.
▸ Working with other parts of the
mutual sector to promote the benefits
and other stakeholders.
AFM UPDATE, JUNE 2016
OUR PARTNERS
38 Members 24 Associates
Other mutual insurers
AFM UPDATE, JUNE 2016
ORGANISATIONAL STRUCTURE