Donna Carbell leads the product development, distribution, marketing and client service for the Individual Insurance line of business. She has more than 20 years of experience in the financial services space in progressively senior roles at Manulife. During her tenure at Manulife, she was Head of Group Benefits, Customer Experience and senior roles in Investments and Securities, Insurance, and Retirement. Donna is a Board Member of Special Olympics Canada and holds an MBA from Wilfrid Laurier University and a bachelor’s degree in political science from Carleton University.
Through this article, Donna Carbell shares her insights on how mutual insurance companies are both relevant and successful in the current insurance landscape.
The insurance industry has a rich history in Canada. At a few points in the past, mutual insurance companies were a big part of the conversation about insurance overall. First, in the 1950s and 1960s when several insurance companies, including Equitable, mutualized to retain local ownership. Then again in the 1990s and early 2000s, when the headlines were about companies making the change from mutual ownership, owned by policyholders, to publicly traded stock companies, owned by shareholders.
These days, there are fewer mutual companies in Canada, and we rarely – if ever – see headlines about ownership structures. While that may be true, there’s still a place for the modern mutual. Their market share continues to grow
When we talk about a mutual, though, we’re not just talking about an ownership structure. When it’s done right, mutuality plays a role in all aspects of a business
According to ICMIF (International Cooperative Mutual Insurance Federation), in 2022 mutual and cooperative insurers collectively saw $1.4 trillion in premiums, over $10 trillion in assets and 889 million members (or clients as we say at Equitable). The most recent Global Mutual Market Share report shows that in 2022, the global mutual and cooperative sector outperformed the total global insurance market in annual premium growth for the third time in four years. Collectively, mutuals have posted positive annual growth in 12 out of the last 15 years.
Those numbers speak to the ongoing importance and success of mutuals in the marketplace. As we move through 2024 and into the future, I believe mutuals are as relevant as ever. And they are resonating with today’s consumer.
When we talk about a mutual, though, we’re not just talking about an ownership structure. When it’s done right, mutuality plays a role in all aspects of a business. It has an impact on clients, partners, employees, and society as a whole. Today’s modern mutuals have a lot to offer and are uniquely positioned to focus on their clients, demonstrating that focus in ways that are different. We hear a lot about purpose-led organizations. For mutual insurance companies, it’s a way of life.
So, what sets mutuals apart? This is a question I get all the time. At Equitable, our products and solutions are often industry-leading – our Participating Whole Life product is one example.
For mutual companies overall, though, I think the key differentiators are more subtle.
• Mutuals can focus exclusively on clients. It’s in our culture, and our structure enables us to truly put clients at the center of everything we do. That’s because we aren’t faced with competing priorities.
• We focus not only on immediate quarterly pressures but also on long-term plans that build a foundation for the future. Financial goals are driven by our purpose, not solely maximizing profits.
• Are mutual companies profitable and growing? Absolutely. Growth lends itself to purchasing power, economies of scale, investment flexibility and diversification of risks. Mutuals can reinvest in the business in ways that benefit clients.
• We focus on making a positive impact on our communities where we live, work, and do business.
• We utilize technology and innovation to build strong personal connections with our clients.
• Most mutuals are locally focused. Equitable is in Canada, focused solely on supporting Canadians.
• Finally – mutuals can be nimble and adaptive – wellpositioned to adapt as the needs of clients shift.
All of these differentiators ring true at Equitable. We operate with the belief that when we come together, great things follow. We aim to harness the power of togetherness to forge a collective purpose. At Equitable, this mindset drives our behaviors, decisions, and actions to power equitable outcomes. This mindset also drives our partnership model with financial advisors. The shared focus on our purpose guides how employees show up daily, committed to being at their very best to support Canadians today and into the future. It is our unique mutual structure that is at the heart of what enables our focus on improving the financial well-being of those we serve – our clients, partners, and community.
In short, it’s all about the client!
For over a century Equitable has delivered on its promise to be there for Canadians. We believe that now, it’s more important than ever to invest further. As Canada’s only federally regulated mutual life insurance company, Equitable has a deep commitment to mutuality and to operating in a way that’s focused solely on clients
In a landscape where people want to feel connected to something and to be more than a number, there’s an important place for mutual companies. The resilience of the mutual insurance model over the last decade, in fact over the last century, confirms that there continues to be an important place for mutuals – not only as an alternative to traditional insurance but as a leader in 2024 and beyond.
