When you operate a true member focused mutual, and your customers and shareholders are your members, the way in which you operate is different from other types of businesses. At CivicRisk Mutual we go above and beyond for our members and are always looking for ways to help and create value for them.
Since 2020 CivicRisk Mutual has been participating in a pilot program to implement a new Mutual Value Measurement (MVM) framework designed by the Business Councils of Co-operatives and Mutuals (BCCM) and Monash University.
This framework gives co-operatives and mutuals, like ours, the guidelines to capture and measure the real value of our mutual to our members through a set of common dimensions and shared language about measuring and reporting the unique ways we create value for our members.
MVM Framework value for members
The framework consists of six dimensions in which to identify unique areas of key value that cooperatives and mutuals generate. The key ways CivicRisk created value for members in 2021/22 are:
Commerciality – Deliver value
- Members received $1.25 million of surplus in cash to assist with the financial impact of COVID.
- Member ownership model demonstrated resilience with $2.2 million surplus retained during significant claims year.
- Members experienced lower increases in contributions compared to the general insurance market.
- Mutual commits $15 million to flood relief.
- Member study assistance funding increased exponentially creating greater risk management knowledge and awareness.
Shaping markets – Always looking for a better way
- Mutual provides competition in the market and ensures lower prices for all members.
- Members established a purchasing channel to access reinsurance markets reducing premium by $2.7 million.
Member relationships – Collaborate and share
- Dubbo Regional Council was provided an innovative solution to assist in reopening Wellington Caves in time for peak holiday period.
- Member resources were enhanced, and support increased in response to member staff turnover.
- Members received a high level of service with 96% of risk and support queries being actioned within 1-2 days.
- Members supported one another with mentoring opportunities quadrupling in 2022 saving time, money and creating best practice.
- Members retained all risk enhance grant funding to enable projects impacted by COVID to be implemented.
- 550 (+41%) members trained across 100% of the membership builds knowledge, creates safer communities, mitigates claims and saves councils operational budgets.
Community relationships – Go the extra mile
- Members’ communities received insurance guidance and support by Mutual claims managers.
Ecosystem and reciprocity – Better every day
- Sharing ideas and improving best practice through involvement in discretionary mutual best practice guide development and sharing MVM with International Co-operative and Mutual Insurance Federation (ICMIF).
Mutual mindset – Value mutuality
- Members indicated 97% satisfaction with Mutual in an annual survey.
- 89% of the Members Assembly participated in meetings demonstrating true decision making and genuine control of the Mutual.
In September 2021, the Mutual was accredited and awarded the ‘Mutual Value Mark’ being the mark of a good mutual business. We proudly feature this mark in all of our communication and utilise the values identified in our strategic planning.
Sharing our MVM journey
In March 2022, Lisa Williams, our Chief Financial Officer, presented alongside BCCM to CMIF’s mutual communities about our MVM journey, and in October 2022, Lisa and CivicRisk’s Chief Executive Officer, Andrew Armitstead, presented to the Association of Governmental Risk Pools (AGRiP) Staff Forum in America about how the MVM framework can help develop key performance indicators using a mutual value mindset. Our future plans include:
- Refining measures and setting targets.
- Presenting MVM findings to our members.
- Receiving feedback from members on what matters most to them.
- Reporting processes and measures in our annual report.
- Outlining measures in member presentations.
- Adding measures to Board and members communication.
- Consulting on any strategy adjustments.
Incorporating MVM into our mutual’s operations will help us more fully realise the value we create, resulting in enormous benefits for our councils and future members. With common dimensions and further established language with BCCM, we are confident that our value creation will continue to soar to new heights.
Measuring what matters is valuable to our members and enables easy articulation and assists members when communicating about the Mutual within their Council, with new Councillors or with ARIC Committees. It can also clearly demonstrate to potential members, the benefits and transparency of CivicRisk Mutual.
For more information about our Mutual Value Framework, contact us.