Ami and AFS formalise merger
The Association of Mutual Insurers will formally merge with the Association of Friendly Societies on 1 January next year to create a new mutual insurance trade body.
The group will be known as the Association of Financial Mutuals and will be chaired by Mike Yardley, chief executive of the Royal London Group.
It will bring together Ami's 36 member organisations and AFS's 45 members. The organisation will manage the savings and investments of 6m people and have total funds under management approaching £18bn.
Mr Yardley said: ''During the financial crisis the mutual insurance sector has proved that it is robust and capable of providing exceptional value to its customers. Maintaining a vibrant mutual sector helps keep up competitive pressure on shareholder-owned firms and means consumers continue to be offered real choice.
''So we look forward to the Association of Financial Mutuals making an even stronger case for the relevance of the mutual insurance sector.''
The new organisation is also in the process of consulting with staff from AFS and Ami about the recruitment of a chief executive and other roles.
However, Tony Catt, sole practitioner for East-Sussex-based Tony Catt IFA, questioned how effective trade bodies are.
He said: "I suppose it saves the duplication of having two organisations, but how much power does it really have? They are usually set up for all the right reasons but it is questionable if they are effective. I am sure for some people it is important, but does it actually make a difference to what people do?''
