The current political and economic environment could see friendly societies returning to their roots. Neil Armitage is a believer.
Through its group schemes, Foresters Friendly Society provides bespoke products providing additional extras for CI and Life insurance. The Society has vast experience with large organisations in the public sector with 90,000 individuals currently on risk via its affinity schemes.
According to the Mintel Savings and Investments Intermediary Focus report (December 2012 – UK), the challenging economy is having an impact on customer investment behaviour. Risk is a key concern for most and some 50% of advisers have noticed that their clients are becoming more risk averse.
Risk adversity continues. However, while consumer sentiment and confidence levels are showing encouraging signs of improvement, the fact remains that caution with financial investments and choice of provider is ever present.
Price and value remain key considerations. However, trustworthiness can put providers in a good position to extend their services and market share. The membership structure of a Mutual enables them to provide financial products which are inclusive to all types of consumer.
With no external shareholders to pay dividends to, any revenue generated is for the benefit of the Society’s members with most investing in improved customer service alongside the distribution of any remaining profit to members in the form of bonuses or in the provision of a member benefits/benevolence package.
The member benefits offered vary from one Society to another, but they typically range from discretionary grants, healthcare services, legal advice and discounts on high street brands.
At Foresters Friendly Society, we even offer a 24/7 private GP consultation service. While the benefits can add value to taking out a product or policy with a Friendly Society, it should be remembered that Mutuals are about helping people help themselves, playing a vital role in financial services.
Excellent customer service is at the heart of the Mutual ethos. The Mutual providers’ brand attributes are recognised as friendliness, trustworthiness and ethical values.
Key highlights of a Foresters customer survey found customers using an intermediary or financial adviser experienced high levels of satisfaction with 98% being satisfied with the time it took to arrange the policy while 90% of members say that the society treats its customers fairly.
Although the role of Mutuals in society may have diminished over time, the services that they provide can still make a positive impact on the lives of their members. This was, and still is, the main aim of Mutuals .
The desire for these services is as relevant as ever so it seems we may have come full circle with Friendly Societies once again becoming attractive for the reasons they were originally founded.
Neil Armitage is marketing director of Foresters Friendly Society
