Record new membership figures from PG Mutual highlight the increasing popularity of the mutual financial services provider

As the mutual sector continues to grow despite the economic crisis, leading not-for-profit insurer, PG Mutual has reported a record increase in new business for 2013 so far. These figures seem to support wider research that has shown the mutual sector to be particularly resilient during the recession, continuing to grow and even increase market share against commercial providers.*

PG Mutual, a specialist income protection insurance provider, has this week announced record figures for the first six months of 2013, with applications up by 209% year on year, and new members up by 220% compared to the first half of 2012. An increase of 179% in new business enquiries has also been reported. The increase is even more impressive in view of the fact that 2012 was the most successful year the company has seen since they were established in 1928. 2012 saw the company increase new business enquiries by 126%, and new members by 62%. Website visitors went up by an estimated increase of 66% on 2011.

Many factors have been suggested to account for for the increased popularity of mutual insurers and financial services providers, however, one of the most popular is that mutuals provide a much more customer-focused approach to business – something that consumers find reassuring after the banking crisis. Research by the Association of Financial Mutuals (AFM) found that 46% of people looking to change their financial services provider were looking for ‘an organisation that puts the interests of its customers before those of shareholders’. ** With this in mind, many people may be looking for a mutual provider in future.

PG Mutual Chief Executive Officer, Mike Perry, commented, “We are delighted that our Society keeps on growing, especially given the current climate and the situation many of our larger, commercial competitors find themselves in. We are dedicated to continuing to uphold our member-focused, mutual ethos, while adapting and changing to meet the needs of more and more new customers. We are also pleased to see the sector growing as a whole – the more awareness that can be generated around the benefits of mutuality, the better for everyone.”

*Market Insights Europe Study – March 2013
**AFM Survey, May 2013   

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