Why Buy Your Insurance From a Mutual Insurance Company? - blog-why-buy-insurance-from-mutual-insurance-company

Why Buy Your Insurance From a Mutual Insurance Company?

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Erie Mutual Insurance News, Insurance Tips Advice

Property and casualty (“P & C”) insurance of any kind – home, auto, commercial or farm, has become increasingly more commoditized over the past twenty years. Different insurance coverage, price and fewer number of insurers have all contributed to this trend. Let us not exclude the disruptive nature of new technologies, for they have dynamically thrust change on every participant in the P & C industry.

Property and casualty (“P & C”) insurance of any kind – home, auto, commercial or farm, has become increasingly more commoditized over the past twenty years. Different insurance coverage, price and fewer number of insurers have all contributed to this trend. Let us not exclude the disruptive nature of new technologies, for they have dynamically thrust change on every participant in the P & C industry.

These aforementioned forces have also thrust change upon the mutual insurance community in Ontario. It too has undergone significant change as the commoditization of insurance has accelerated. But the business model of mutual insurance companies remains a viable and stable one that continues to offer great value to all insurance consumers.

Mutual insurance companies are traditional financial co-operatives. They first began in Ontario in the 1800s when farmers were seeking insurance on their barns. The co-operative business model seemed to be the best model in which to organize these fledgling companies given the small community and rural origins of their founders.

Fast forward to 2017 and mutual insurance companies continue to thrive on this same co-operative model. Mutual insurers are owned by its members; they invest in communities to foster growth and prosperity and; they employ thousands of people who reside in smaller towns and rural locations across the province.

So, the traditional, cooperative business model remains in place but significant investment is being made to create greater accessibility to a mutual insurer and to deliver more value to the mutual insurance member. Digital technologies are being deployed to deliver a more efficient insurance experience to all members. New digital member services are in place to offer more value. Most importantly, digital technology better enables employees of mutual insurance companies, to do more of what we do best. That is to grow the human interaction with members that continues to be a priority for all insurance consumers.

Mutual insurers are very responsible corporate citizens and they have become anchor organization in communities of all sizes throughout Ontario. Homeowners, car owners, small business owners, professionals, and farmers have trusted their mutual company over many generations. Comprehensive insurance coverage at an affordable price and a philosophy of “neighbour helping neighbour” differentiates us from the rest. Why not give us a try? You won’t be disappointed.

 

Article Written by John Dunton

Erie Mutual Insurance President/CEO

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