This style of Discretionary Mutual is open to new Members that fit a defined profile that is stated in the Constitution.
Members can request quotes directly from the Mutual, or brokers can request on their client’s behalf.
Renewals for Members can occur throughout the year, on dates that suit individual Members.
Who instigates an Open Discretionary Mutual?
- A large organisation that seeks to support a broad yet defined community.
- A consortium of aligned organisations within a defined industry.
- An insurance broker with a significant book of clients with commonalities.
Growth & Branding
These Mutuals are likely to have an external brand that is promoted to potential new Members.
This may occur through strategic marketing and advertising, or via the organisation(s) that instigated the Mutual.
What does Picnic provide?
Picnic designs, launches, operates, and leads the growth of an Open Discretionary Mutual.
Examples – Our Ark Mutual, Our Guard Mutual
An Enclosed Discretionary Mutual is only available to the customers of a Sponsoring organisation.
Renewals and protection duration is based upon the Sponsoring Organisation’s relationships with their clients.
What’s a Sponsoring Organisation?
It is commonly a large enterprise that has a large customer base that would benefit from being Members of a Discretionary Mutual.
Growth & Branding
The brand of an Enclosed Discretionary Mutual is determined by the Sponsoring Organisation and is visible to the customers that are Members.
Membership growth follows customer growth of the Sponsoring Organisation.
What does Picnic provide?
Picnic designs, launches, and often operates an Enclosed Discretionary Mutual.
An example - Turo
A Closed Discretionary Mutual is only accessible to a defined community of Members.
It is not open to Members outside of that community.
Renewals may occur on a single date for all Members of a Closed Discretionary Mutual, or they may fall on dates spread throughout the year.
Who instigates a Closed Discretionary Mutual?
- A principal organisation within a specific and aligned community.
- A consulting entity to a specific and aligned community.
- An industry association or membership body.
- A consortium of linked organisations.
- A broker or agent with a large, aligned client base.
Growth & Branding
The brand may have limited, or no, visibility beyond the Member community.
Growth is led by the instigator, and sometimes occurs only if the Member community grows.
What does Picnic provide?
Picnic designs, launches, and often operates a Closed Discretionary Mutual.
Picnic operates Closed Discretionary Mutuals on behalf of instigators, that have no public visibility.
There are other alternative risk transfer (ARTs) structure options, including trusts, captives and parametric solutions, that may also be utilised to address a market, customer or industry need.
Picnic supports shared responsibilities for organisations that are managing specific elements of the customer engagement or even a full MGA-style arrangement.
Talk to us for help creating the right alternative to insurance for your circumstance.
