Profitability enables providers to function, but protection insurance needs to ensure it remains inclusive to reach as many people as possible, according to One Family CEO Jim Islam.
He emphasised the importance of the sector recognising those people who could be excluded or facing paying more despite their limited means.
Speakign at the Insurance Innovators Summit, Islam told delegates: “We have to be careful to ensure insurance is inclusive.
“Accessibility is a big, big problem – not just in insurance, but when we look at savings and investments, people don’t get access to financial advice and so on.
“There is a social purpose angle here where we need to take our message and our product to as large a population as we can.”
Profit is essential
Islam added that he did not think profit was a bad word for the sector but that there was need for a greater view.
“In fact mutuals need profitability more than a plc does because I can’t go to shareholders and raise capital,” Islam continued.
“We have to live within our means, so profitability is absolutely critical for the long term sustainability of a mutual.
“But at the same time, you also have the purpose of taking the product and services to as large a population as we can.”
Islam maintained that more needs to be done to help those affected by a poverty premium which restricts their access to financial services.
“Elements such as that, we have to find solutions for that,” Islam continued.
“So we just have to be careful that we don’t make it an exclusive product and we take the message in the right way to as large a population as we can.”