The European Commission’s Social Economy Action Plan encourages better policy and legal frameworks for mutual insurers, and improves awareness in Member States

The Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE), the voice of the mutual and cooperative insurance sector in Europe, today welcomes the publication of the European Commission’s Social Economy Action Plan. Mutual and cooperative insurers are key stakeholders in Europe’s social economy.

Launched today in Brussels by Executive Vice-President Valdis Dombrovskis and Commissioner Nicolas Schmit, the action plan proposes a Council recommendation to better adapt policy and legal framework to the needs of social economy entities, including mutual and cooperative insurers.

In addition, the action plan proposes to raise awareness across the EU of the mutual insurance model, and address the application of proportionality under the Solvency II 2020 Review, potentially reducing the administrative burden for mutual insurers.

Sarah Goddard, Secretary General of AMICE, said: “AMICE warmly welcomes this action plan, which will bring a greater awareness of the mutual insurance model across the EU, and greater consideration of the diverse legal forms covered by the social economy. Our sector is an important contributor to long-term sustainability, and is an important actor within the social economy, responsible for about 30% of all insurance activity in Europe. There are still some EU Member States which do not make a distinction between mutual insurers and other types of insurance organisations, and therefore are not reflecting the member/policyholder model. The proposals in this action plan should result in a better reflection of the mutual structure and enable proportionality to be more appropriately applied. Ultimately, this will benefit European policyholders.”

AMICE is a member of Social Economy Europe (SEE), which has been advocating for a Social Economy Action Plan for several years. Europe’s social economy comprises 2.8 million enterprises and organisations including mutual insurers, and employs 13.6 million people. It contributes 8% of the EU’s GDP.

The action plan contains many proposals to promote and support the social economy across the EU, recognising the valuable contribution it makes to the European economy and wider society. It includes actions to maximise the contribution of the social economy to the European Green Deal, encouraging digitalisation and new technologies, and boosting social innovation. The European Commission has produced a video on the social economy that can be viewed here.