Development of Mutual Insurance in France : 1960-2017

Abstract

Mutuality is the oldest social movement on French soil as the first mutual support groups were founded just before the French Revolution at the end of the 18th century, that is half a century before the first cooperatives and one century before workers’ unions. The tremendous development that the mutuality underwent in the second half of the 20th century in France, especially in the non-life insurance market where it was not a real actor until then, attracted the attention of professionals the world over. It is a reference that is even contemplated in the Islamic World where it could serve as a model for Takaful, and in developing countries where it could be adapted to micro-insurance. Beyond their importance in the French insurance markets, both non-life and life mutuals insurance play an important role in European economy and society, providing social coverage and other types of insurance to a significant proportion of European citizens. Some have questioned whether the liberal inspired European legal environment might threaten the future growth of mutual in the 21st century, or even the existing market shares, for a model that has proven efficient not only in its initial domain healthcare, but also in non-life insurance where it has really bloomed since World War 2. Following a presentation of the historic development of the mutuals in France since the Revolution, this article presents an overview of the specific features and roles of mutual societies in France, mentions relevant French and EU law applicable to mutuals, and considers the performance of mutuals through the financial crisis. The article takes the view that mutuals have the potential to contribute to the inclusive and sustainable growth of the European Union.