Mutual benefit societies

Mutual benefit societies (also called mutual societies or mutuals) are enterprises providing life and non-life insurance services, complementary social security schemes, and small value services of social nature. Their primary purpose is to satisfy needs of their members while not working for profits or providing a return on capital. Mutual societies are managed according to solidarity principles among members who participate in their corporate governance. They are intended to be accountable to those whose needs they were created to serve.

How mutual societies work

The mutual ownership and governance model is based on five principles:

Member well-being: Mutuals prioritise protection of their members and inclusive access to services, without exclusions based on pre-existing conditions.
Solidarity: They operate through risk mutualisation and support among members.
Non-profit status: They have no shareholders and aim to provide fair pricing and accessible services.
Democratic governance: Members participate in decision-making under the principle of “one member, one vote”.
Proximity: They maintain a strong local focus to better respond to the needs of their members.

In terms of activities, mutuals operate across a wide range of sectors, including:

Healthcare: in some cases, as health insurers that cover all or part of healthcare costs on behalf of the state; in others, as a supplement to the basic system; and in others, as providers of alternative healthcare services
Non-life insurance: such as property, motor and liability insurance.
Life and disability insurance: providing financial protection and long-term savings products.
Other sectors: including housing, health centres, nursing homes, funeral services, and death benefits.

In addition, mutuals are characterised by a strong focus on prevention, health education and resilience to climate and social risks.

Mutuals market share in the insurance sector

Graphs showing the market share of mutuals in various countries

Source: AMICE

The contribution of mutuals to the European economy and society

As employers and investors

Mutual and cooperative insurers together are significant economic actors in Europe. They serve approximately 507 million members/policyholders, generate around €509 billion in premium income, and manage €3.67 trillion in total assets. They also employ over 487,000 people across Europe(see benchmarking study).

As member-owned organisations without external shareholders, mutuals are not driven by short-term profit maximisation. This allows them to act as long-term, patient investors, channeling resources into sustainable activities such as climate transition, social infrastructure, and healthcare systems. Their investment strategies contribute to economic stability and long-term value creation.

Innovation

Mutuals promote a distinctive approach to innovation, closely linked to their social purpose. They view digital technologies not only as tools for efficiency, but as drivers of social progress and inclusion.

Their innovation model is guided by key principles such as inclusiveness (avoiding digital exclusion), data protection and privacy, and improved health and social outcomes.

They develop people-centred, solidarity-based solutions, particularly in areas such as healthcare and prevention, ageing populations, , contributing to more accessible and equitable services.

Resilience

Mutuals play a crucial role in strengthening economic and social resilience. Their governance model, focused on members rather than shareholders, enables them to maintain stability in times of crisis and prioritise long-term needs over short-term returns.

They are key actors in addressing major societal transitions, including climate change, the digital transformation, and demographic ageing.

Their solidarity-based approach contributes to social cohesion and helps ensure that vulnerable groups are not left behind.

Economic stability

Mutuals contribute to the overall stability of the European economy. Their long-term orientation reduces speculative behaviour and supports more stable and sustainable financial markets.

They also reinforce the sustainability of healthcare and social protection systems, acting as stabilisers in periods of uncertainty. Their member-driven governance model ensures that economic activity remains aligned with societal needs, strengthening trust and resilience across the system.

Legal situation and challenges in the EU

Two types of mutuals can be distinguished in the EU:

Health (providence) mutuals predate modern social security systems and cover risks such as illness, disability and death. These are usually subject to specific legislation.
Insurance mutuals cover all types of risk (accident, life insurance, etc.) and are normally subject to general legislation regarding insurance.

National legislations are fairly homogeneous in respect of insurance mutuals, but highly diverse in respect of providence mutuals. The latter have evolved according to the social security systems in each EU country.

Despite their relevance, mutuals lack a harmonised legal recognition across the EU. There are significant differences between Member States and, in some cases, regulatory pressures have weakened the mutual model.

Mutuals face several challenges:

Increasing competition from for-profit companies and international investors,
Regulatory frameworks that do not always take into account their specific features.
The risk of being subject to the same regulatory requirements as for-profit companies without due application of the principle of proportionality.

Mutuals contributing to green, digital and fair transitions

By promoting a model based on solidarity, sustainability and a people-centred approach mutuals are key actors in the major transitions facing the EU.

1. Climate transition

Mutuals contribute significantly to the green transition by promoting a sustainable development model based on long-term value and the absence of short-term profit pressures. They act as both investors and risk managers aligned with the European Green Deal, integrating sustainability criteria, supporting prevention and financing climate-related solutions. They also develop innovative products and cooperate with public authorities to improve protection against natural disasters, ensure access to affordable insurance and strengthen economic and social resilience.

2. Digital transition

The digital transition in the mutual sector is people-centred, aimed at benefiting members while ensuring that no one is left behind. Mutuals promote digital innovation — particularly in healthcare — to improve quality, efficiency and access to services, reinvesting their resources for the benefit of the community.

At the same time, they highlight the risks linked to data access and sharing — such as under the proposed Financial Data Access (FiDA) framework — which could favour large technology companies, lead to market segmentation and leave vulnerable groups without coverage. Mutuals therefore advocate for a digital transition aligned with European values, supported by appropriate regulatory frameworks and dedicated funding to develop secure infrastructures and innovative solutions without dependence on external actors.

3. Ageing and social cohesion

Mutuals play a key role in reducing inequalities in healthcare and social care, particularly in disadvantaged areas, and promote an inclusive, people-centred approach.

In response to the increasing commercialisation of the sector, they advocate for care provision focused on wellbeing rather than profit, while offering more attractive working conditions for professionals. They also emphasise the importance of supporting informal carers and promoting innovative solutions such as telecare, ensuring accessibility and preventing digital exclusion.

In the context of an ageing population, mutuals contribute through services and products that enhance long-term resilience, while fostering cooperation among stakeholders and encouraging the active involvement of users in the design of services.

The way forward

The Social Economy Action Plan has improved the visibility of mutuals. However, challenges remain regarding their full integration into EU policies.

In this context, a workshop on the role of mutuals in the EU took place in December 2025. The main recommendations from the workshop are:

Ensure fair and appropriate treatment of mutuals in Europe, upholding the primacy of the member/policyholder.
Encourage the recognition of the status of mutuals among EU Member States through appropriate frameworks that facilitate their cross-border development and protect the mutual model, considering the differences between for-profit insurers and mutuals.
Establish a mechanism to monitor the implementation of the Council Recommendation on developing social economy framework conditions in Member States, ensuring recognition of the diversity of social economy entities, including mutuals.
Develop a better understanding of mutuals within Member States and across the EU through training courses on the social economy for European institutions and national representatives, highlighting their structure, roles, activities, and importance.
Promote mutual principles and combat the commercialization of health through the implementation of the European Pillar of Social Rights.
Facilitate access of social economy entities, including mutuals, to public procurement by moving from the lowest price principle to the Most Economically Advantageous Offer (MEAT), strengthening social clauses in the revision of the Public Procurement Directive, and promoting socially responsible public procurement (SRPP).
Facilitate mutual insurers’ participation in long-term investment strategies by adapting legislation and regulatory requirements, in line with EU policy initiatives such as the Savings and Investment Union.
Create enabling environments for climate adaptation investments, including through green budgeting frameworks and improved project appraisal tools that account for uncertainties and non-market benefits.
Align financial markets with climate resilience objectives through clear disclosure frameworks and simpler classification systems within EU taxonomies.
Provide targeted EU funding and programmes for social economy actors, including mutuals, to support investment in secure data infrastructure, trusted cloud, AI for prevention and chronic care management, and cross-border e-health projects, reducing dependency on large technology providers.
Support mutuals in promoting healthy ageing in Europe and in contributing to the development of national health system models that integrate preventive care and holistic health management.
Ensure the participation of mutual insurers in future EU4Health programmes, with provisions that foster the involvement of not-for-profit actors.
Recognise mutuals as key and distinct actors in the implementation of financial literacy strategies at EU level.