Mutual insurance companies have gained back some of the global market share they lost due to demutualizations in recent years. Those gains are threatened, however, by new financial regulations, changes in corporate governance and new technology, Swiss Re said in its latest Sigma report.
“Despite their strong showing during the global financial crisis, mutual insurers face challenges in adapting to the changing business environment,” Swiss Re notes in its report. “New risk-based regulatory capital standards could put some firms at a competitive disadvantage compared with better-diversified insurers.”
