Insurance - ICMIF

    This document has been made available in electronic format
         by the International Co-operative Alliance ICA 
                         February 1996

International Co-operative and Mutual Insurance Federation

                     Activity Report 1995

ICMIF is also known as: 
-     Federation Internationale des Cooperatives et Mutuelles
-    Kokusai Kyodokumiai Hoken Rengo
-    Internationaler Verband Genossenschaftlicher und
     Wechselseitiger Versicherungen
-    Federacion Internacional de Cooperativas y Mutuales de

Chairman:      Tian Kin Lian (Singapore)

CEO:           Hans Dahlberg (Sweden)

Vice-Chairman: Enea Mazzoli (Italy)

Members:  Alfredo Gonzalez Moledo (Argentina);  D. Richard
McFerson (USA);  Peter C. von Harder (Germany);  Kenichi
Kasamatsu (Japan);  Denis Ploton (France);  Siegfried Sellitsch
(Austria);  Alan D. Sneddon (UK);  Terry Squire (Canada);  Hkan
Tidlund (Sweden).

This year John Fisher retired from the ICMIF board of directors,
of which he was Chairman from 1984 to 1990.

We have had the pleasure of welcoming a few new members,
associate members and observers during the period under review. 
Generally speaking, however, the expansion of the membership has
been progressing more slowly than we should have wished and more
attention needs to be devoted to recruitment in the immediate
future.  The Guide to applications for membership, published
towards the end of 1993, was designed to simplify this process: 
suitable prospective members should be able to identify with the
description given at the front of the brochure while those who do
not share our aims will recognize that the Federation is not the
place for them.  We have encouraged all our members to make use
of this publication freely when talking with other insurers with
which they feel an affinity in their own markets.  We would also
welcome any referrals from other ICA affiliates.

ICMIF now has 84 full members, six associate members and three
observers.  In some cases, these include groups of associated
mutuals or companies.

In 1994, Reinsurance Services was involved with 51 members in 31
countries.  Of these 51, Reinsurance Services provided a broking
and/or accounting service to 35 members.

At the 1994 reinsurance renewal, several member insurers
increased retentions and consequently reduced the amount of
premiums ceded to reinsurers.  Some ICMIF members reduced their
exposures in terms of reinsurance accepted.  The net effect was
that the volume of reinsurance premiums exchanged between members
fell by 16.0 per cent to GBP 43 million.  However if premiums
were adjusted to allow for the fluctuation in currency exchange
rates between 1993 and 1994, the percentage decrease would be
12.7 per cent.

Until the end of 1993, Reinsurance Services had administered two
reinsurance pools, the Fire Facultative Facility and the
Co-operative EC Cover.  As the consequence of a series of poor
results, the Co-operative EC Cover was cancelled at the beginning
of 1994.  However, in spite of experiencing a loss in the 1993
underwriting year, the Facility continued in 1994.  Since its
introduction in 1972, overall results on this Facility have been

The 12th Meeting of Reinsurance Officials was held in Columbus,
Ohio from 5-11 June 1994, where the host company was Nationwide. 
Until now meetings have been held in English but for the first
time, the languages of the meeting were English and Spanish with
simultaneous interpretation provided in both languages.  This
attracted a record attendance of 71 participants from 44 members
in 27 countries.

The implementation of the Business Plan for Reinsurance Services
began in 1994.  In accordance with the plan, studies into the
facultative reinsurance needs of our members, and life
reinsurance are being conducted.

The Committee established a strategy for reinsurance training and
produced a reinsurance manual designed to be used as a work of
reference and as a guide to establishing an effective
administrative system.  This manual has proved to be very popular
and orders for over 40 copies have been received from members. 
The manual is to be used at training seminars at a regional level
during 1995.

Reinsurance services are now reorganised along regional lines,
with the aim of encouraging closer ties between ICMIF and its
regional associations and advisers.

A priority for ICMIF's development arm has been to delegate
implementation of projects to regional associations which are
closer to members and prospective members in their areas.  Except
for the Americas Association, which has a history of productive
involvement in insurance development, regional associations had
other priorities to pursue before the development function was
integrated into the new ICMIF secretariat in 1993.

Anyone who has taken a close interest in the activities of the
Federation is aware that its resources are limited;  even with
the generous donation of expertise and assistance in other forms
from individual member societies which has been characteristic of
our organisation from the start, it is to be expected that
ambitions will always (and perhaps even should always) outstrip
the means to fulfil them in the short term.  The board of
directors and secretariat staff are conscious, therefore, of the
need to use the available resources effectively and to achieve
the Federation's ends in the most efficient manner.  It has been
agreed that development effort should mainly be directed to a
smaller number of projects which individually are assessed as
having a good prospect of success.

When ICMIF funds are used for development projects, the cost is
charged to our development fund which was established in 1988 in
order to equalize such expenditure.  It was backed by a
commitment to allocate one quarter of the fee income of the old
ICIF for development purposes.  The board has decided that from
1995 onwards the fund will be credited with 12 per cent of the
fee income of ICMIF, which is broadly equivalent to the previous
level of funding.  The rate is reviewed at least once in every
four years.

Regional Associations
Activity in the regional associations is gaining momentum. 
Members in Africa established their own regional association,
AFRA, in 1994.  A resolution to give recognition to AFRA, and
thereby make it formally a part of the ICMIF structure, will be
presented to the 1995 conference.

The Asia & Oceania Association (AOA) plans to hold another of its
technical insurance workshops for selected staff of members, in
Korea in October 1995.

The Americas Association of Co-operative/Mutual Insurance
Societies (AAC/MIS) held a week-long seminar for volunteers in
insurance development in Washington, D.C., in May 1994.  An
international group of 14 from 10 ICMIF members took part in the
seminar.  ACME (the Association of Co-operative and Mutual
Insurers in Europe) continues to monitor the consequences for
members of the changing economic and social environment as a
result of the integrating European market.  It held a seminar on
communications as a strategic tool for members in Vienna in May
1995 with the assistance of Wiener Stdtische, and plans to hold
a seminar on cost control, hosted in conjunction with Unipol, in
Rome in November 1995.

Special Projects
Steps taken with the aim of gradually enriching the intelligence
shared among members were the initiation of projects for
collaborative primary research and the compilation of the member
directory, two components of the plan to create an intelligence
centre and database at the secretariat.  The collaborative
research projects completed in 1995 are on distribution systems
and the future of motor insurance.  In the same vein, a network
for investment specialists was set up which met twice, in 1994
and again this year.  The latest one, on international portfolio
diversification, focused on the turmoil in foreign exchange
markets, and how it may continue to affect economies and markets
of various regions.

Internal communication has been considerably enhanced with the
regular publication of our new newsletter Network and with the
issue in 1994 of an annual report for the very first time.  The
second annual report is to appear in September 1995.  Keeping
member societies constantly informed about what is happening in
ICMIF - and extending the network of our contacts - are regarded
as important priorities in the pursuit of our slogan:

A global reach for local strength
ICMIF is exploring, in conjunction with other members, the
possibility of joining an international electronic mail network.

The core function of the ICMIF secretariat is to help member
organisations achieve their business objectives within an
international framework - regionally as well as globally.

In pursuing this objective, the ICMIF secretariat maintains close
relations with the ICA and other related international

ICA member organisations in each region represent an important
segment of the market of each ICMIF member society.  From that
perspective, representation of ICMIF at ICA Regional and General
Assemblies will continue to be important.

Exchange of information at these gatherings and through other
media such as this Annual Report helps ensure that ICMIF and ICA
work together effectively to secure a bright future for the
co-operative movement.