New research suggests consumers tend to be in favour of mutual organisation retaining their status, ...
New research suggests consumers tend to be in favour of mutual organisation retaining their status, but don't really understand the issues.
A survey published by financial consultants NMG indicates that customers believe that mutual building societies and insurance firms should keep their status where possible, as 50% and 52% respectively believe there are benefits for customers than with a public company.
And just 13% of the 772 people questioned think there is no benefit in a company remaining mutual.
Problems did surface, however, when consumers were asked to state the pros and cons of mutuality, as 55% of people had insufficient understanding to answer the question.
One advantage of this, at least, says Jonathan Gunby, director of NMG, is consumers will not know enough of the issues to automatically opt for demutualisation when the need arises.
"While there is a significant lack of awareness and education by the majority of consumers in the pros and cons of mutuality, it is clear that the majority of those with an opinion are not going to be easily persuaded by the arguments of the carpetbaggers."
£1bn business since inception
Considered doing so in 2015
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