BCCM’s Discretionary Mutual Code of Conduct Guide & Video now available


On 16 December 2022 the Business Council of Cooperatives and Mutuals (BCCM) unveiled a Code of Conduct to govern the use of Discretionary Mutual Funds (DMF’s) and provide a clear framework for affordable risk protection across the Australian economy.

As part of this release, BCCM CEO, Melina Morrison, has noted that:

  • There has been a renewed interest in DMF’s as a substitute for conventional insurance in response to surging premiums and a series of natural disasters.
  • Regular economic cycles and shocks, as well as longer term environmental and social trends, are making risk management more challenging.
  • As insurance markets harden, an increasing DMF’s offer an alternative, providing financial protection in the event of a broad range of property loss or damage and third-party liabilities.
  • DMF products differ from traditional insurance contracts because the cover is provided on a discretionary basis, with fund members having a right to have their claim considered but no automatic, contractual right to indemnity.

Read the full BCCM media release.

Read the Principles, Code of Conduct and Good Practices for Australian Discretionary Mutual Funds.

Watch the Video of interviews with Capricorn CEO Jim Glossat, Unimutual CEO Geoff Henderson, CivicRisk Mutual CEO Andrew Armitstead and BCCM CEO Melina Morrison.

If you would like to know more about Discretionary Mutuals or CivicRisk Mutual, please contact us.