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Pricing Proprietory vs Mutual

I

Iguana

Member
How is the pricing of general insurance products different between a proprietory and a mutual in terms of...

  • Data issues - will mutuals not have access to as much data?
  • Methods - how will methods differ between them? Is proprietory more likely to use experience rating than mutual?
  • Loadings - will mutuals still have profit loadings?
  • Other factors - how do mutuals obtain their business via brokers?
 
I wouldn't expect there to necessarily be any difference in the pricing, except that mutuals would not have a profit loading, and so should offer cheaper premiums than a proprietory, all other things being equal. There may be different tax allowances as they are taxed differently.
 
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