HE00895 - A mutual insurer's view of the human element

Mutual insurance is insurance at cost. Owned by its assureds, and designed not to make a profit, the cost of mutual insurance to its members is directly linked to its claims.

Therefore anything which reduces claims will directly impact on a member’s contributions (premiums). In 1987, 55 percent of the UK P&I Club’s large claims were considered by its claims executives to have been caused by human error.