MUTUAL OWNERSHIP MODEL
MIKE VIRLEY
FCIP, CLA, PFMM,
VICE-PRESIDENT OF MEMBER SERVICES,
TRILLIUM MUTUAL INSURANCE COMPANY
The Higher Purpose And Benefits
Of The Mutual Ownership Model
I
nsurance is a begrudging purchase,
generally not wanted, with most buyers
feeling that they will never use it, or at
least hopeful that they will never need
to use it.
Most people at some level know, but likely
give very little thought to the fact, that
insurance underpins the world’s economy.
The economy’s growth is primarily based
upon the ability to access credit, whether
obtaining a mortgage to buy a home or
property, acquiring a loan, or needing credit
to start or expand a farm or business. In
order to access credit, the creditor generally
requires that the underlying assets are
protected by insurance. Absent the ability to
access credit, individuals are limited by how
much of their owned assets they are willing
to put at risk in order to grow, expand, or
accumulate more wealth.
In many developing countries today, the
penetration rate for insurance is very low,
thereby limiting economic growth. A farmer
in a developing country who cannot access
or afford insurance cannot access credit,
thereby limiting their investment in, and the
growth of, their farming operation. They are
limited by how much of their own capital
they have and are willing to risk.
Roughly 160 years ago in Ontario, the
mutual insurance system was born out of
necessity by Ontario farmers. The mutual
model helped mitigate the extent to which
their assets were at risk from a devastating
peril while still allowing them to grow their
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operations. Unable to acquire or afford
insurance, farmers in various counties
across Ontario started to band together
to insure one another. They pooled their
money to draw upon if one of them should
suffer a loss. They recognized the mutual
value of coming together for the common
good.
This ethos was based upon the Seven
Cooperative (Mutual) Principles as
established by the Rochdale Society of
Equitable Pioneers:
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
mutual insurers operate today.
As a 100% Member-owned mutual
company, neither focused upon maximizing
profitability nor quarterly share values and
returns, we can focus upon the long-term
sustainability of the organization for our
Members. We are tasked with being the
fiduciary guardian of the capital surplus that
has accumulated since our inception and
that is owned by all the Members. We exist
for the sole benefit of our Members.
THAT MUTUAL OWNERSHIP MODEL
GUIDES HOW WE ACT AND THE
EXPERIENCE DELIVERED:
4. Autonomy and independence • Policyholders are Members/Owners and
treated with professionalism, courtesy,
transparency, respect, and a greater level
of service.
6. Cooperation among Cooperatives
(Mutuals) • We share risk management advice and
education to protect Members’ families
and assets.
5. Education, training, and information
7. Concern for community
This rudimentary insurance system became
more formal and structured over the years.
The world is a different place today, but our
Members still have the same needs and face
similar risks: the complexity and diversity
of agricultural and farming operations and
equipment, the distance from fire protection,
fuel oil and alternative heating methods,
windmills and solar energy, and drones.
The spirit of mutual reliance upon one
another and mutual ownership is the
underlying value system upon which farm
• Claims are paid promptly, fairly, and
equitably, while understanding the
fiduciary duty owed to all Members.
• We create and provide the best possible
insurance solutions offered at an
affordable cost, while understanding
that the only means by which a mutual
can raise capital is with profitable
operations over the long term.
• We give back to the communities that we
serve, where our Members and employees
live—we are all in this together.