FAQ

What are the main differences between a Mutual and a Co-operative?
There isn’t actually any real significant difference between a mutual and a co-operative. The principal distinction lies in their basic operating principles. Generally, a co-op’s raison d’être tends to be "to each according to use" whereas a mutual’s is more like "to each according to need."

The goal of a mutual is to create a fund that all members can fall back on in times of need. However, while mutual members purchase insurance policies and pay annual premiums, they hope never to be in a position to need them. In contrast, members of a co-op want to use the services the co-op offers as often as possible in order to get the maximum benefit out of being a co-op member.

When talking about both mutuals and co-operatives, in many respects, we are talking about an independent association of individuals who have voluntarily come together in order to fulfill their common cultural, social and economic needs and aspirations through co-ownership in a democratically-run organization.

Why hasn’t SSQ Financial Group made the move to demutualize?
In the insurance world, demutualization is a process whereby mutual life insurers convert their companies from ones that are “owned by their policyholders” to ones “whose shares are owned by investors.”

Over the years, SSQ Financial Group has steadfastly refused to go down the road of demutualization. It remains firmly committed to maintaining its status as a mutual company. This is in part due to the fact that it believes that in a highly competitive service-based market the best way to serve its clients is for them to be co-owners.

Ever since it was founded in the 1940s, SSQ’s mission has been to provide its members with quality service and to put their needs first. This vast experience in developing quality customer service and lasting client relationships has played an important part in shaping the organization’s operations and has proven that demutualization is not an option for SSQ.

Aren’t mutual companies an old-fashioned notion?
At SSQ, we certainly don’t think that mutualism is an outdated concept! And many specialists agree that future organizations will be based on upholding mutualist ideals such as loyalty, solid values, continued learning and taking actions based on reason and justice. Co-operatives have always embraced these values and SSQ remains committed to them as it looks to the future.

What makes insurance coverage with a mutual different from coverage with a publicly-traded company?
Several things distinguish being insured with a mutual from being insured with a publicly-traded company. What differentiates a mutual from a publicly-traded company most in this arena is its focus on quality customer service. While publicly-traded companies must work hard to meet the financial objectives of their shareholders, mutuals work hard to meet rigorous standards they set for quality products and customer service. Evidently, these interests are not the same.

By choosing to always put people first, SSQ, Mutual Management Corporation will continue to play an active role in the community and hopefully provide an inspirational model as a socially responsible organization.

Interesting Co-op Web site links

International Co-operative Alliance (ICA)
International Cooperative and Mutual Insurance Federation (ICMIF)
Société de coopération pour le développement international (SOCODEVI)