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 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 health and protection general insurance life and pensions 125 100 75 ▸ AFM members 50 manage around 5 million policies 25 0 ▸ AFM member 2015 2016 market share of 0.5%
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 of corporate diversity to policymakers and other stakeholders.
AFM UPDATE, JUNE 2016 OUR PARTNERS Other mutual insurers 38 Members 24 Associates
AFM UPDATE, JUNE 2016 ORGANISATIONAL STRUCTURE
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