Jerry Theodorou, a Vice President of Insurance Research at Conning, previews a strategic study that looks at Mutual property-casualty insurance companies. According to Mr. Theodorou, there is an elevated degree of concern in five areas: technology, expense ratios, the war for talent, demographic and sociodemographic changes, and the future for personal auto.

Conning is finding Mutuals are reacting proactively with structural and non-structural changes, including more affiliations and joint ventures to face these challenges. The structure of Mutuals is different from stock companies, having policyholders that have an interest in the company, their profits (in the form of dividends), their voting rights regarding directors of the Mutual, and limited access to surplus. Thus, Mutuals can think for the “long-term” while stock companies must think more short-term (quarterly) and answer to shareholders and equity analysts. “It makes a world of difference.”

According to Mr. Theodorou, the outlook for P&C Mutuals is positive. They have been around for 250 years; they’ve survived and thrived by being resilient, changing with the times, and serving policyholders. ”Mutuals are managed for the long-term.”

For more information, visit the Conning website.

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