FAQs

For organisations that are not involved in mutuals, this may be a concept that you are not
familiar with. In fact, mutuality is a growing sector in the insurance world and there are an
increasing number of groups choosing to manage their risk in this way, including doctors,
farmers, solicitors, oil and gas companies and universities.
AIM is managed by Regis Mutual Management Limited, whose team has a proven track
record and reputation for innovation and success in the management of mutuals both in
the UK and Australia. Mutuals managed by Regis include: The Activities Industry Mutual,
the Livery Companies Mutual, the National Federation of Retail Newsagents Mutual (NFRN
Mutual) and Marathon Mutual for the care home sector.

What is a mutual?
Mutuals, by definition, are owned by and operated for the benefit of their members.
Normally a mutual will be established to serve the requirements of a particular industry or a
group where there is a high degree of commonality.
A mutual company will usually be established as a company limited by guarantee and owned
by its members. The mutual's affairs will be run by a Board of Directors elected by the
membership, some or all of whom will be drawn from the membership of the mutual.

What does Activities Industry Mutual offer?
The Activities Industry Mutual (AIM) has been formed to protect the risks encountered by the
outdoors industry sector. It has been established for the industry, by the industry following
two years of industry wide research of AALA licensed adventure activities providers by CTBS
Insurance Solutions.

Why do groups establish mutuals?
• Control - A mutual provides its members with greater control over all aspects of
protection and can tailor its cover to meet its members' specific needs.
• Cover - As the mutual has control over the cover offered, it can provide the widest cover
prudent for its members.
• Cost - A mutual is structured to get the charge made to the members as close to cost
price as possible. The insurance market, on the other hand, is a commodity market and
insured's can experience large premium increases from one renewal to the next depending on
the state of the market.
• Compatibility - Most successful mutuals are selective, accepting only those entities that
display good risk management control.
• Continuity - A mutual provides a long term, viable solution to its members' needs,
and will provide cover to its membership for as long as the membership feels that it is
performing a useful role.
• Underwriting surplus and investment income - earned on the funds belong to, and will
be used for, the benefit of the membership. There is no loss of funds through undisclosed
commission payments and the payment of dividends to third party shareholders

What type of mutual is AIM?
AIM operates as a hybrid mutual. The Mutual pools a portion,
initially the first £50,000 of each risk, on a discretionary basis
(as described below). Above this level the Mutual arranges a
group insurance policy with each member as a named insured.
The Mutual and its managers are authorised and regulated by
the Financial Services Authority.

What does "discretionary" cover mean?
Details of the scope of cover and claim conditions are provided
to all members in the form of a Cover Wording when they join
the Mutual.

The Board has discretion in the payment of claims and the
managers handle the claims administration, recommending to
the Board whether a claim is covered and the amount payable.
The Directors will exercise their discretion to refuse a claim
only when they believe that AIM members would expect them to
do so. They also have power to pay claims that are specifically
excluded under the Cover Wording should it be decided that
circumstances merit it.

How does a mutual ensure its financial solvency?
AIM purchases high level insurance with insurers of excellent
financial strength. The arrangements are structured in such
a way that the Mutual's assets cannot be exhausted by an
adverse claims experience.
Is there any individual financial exposure to members?
All members are limited by guarantee with a maximum
exposure of £1.

Are there any documents outlining the rights of members?
The rights and entitlements of members are set out in the
Memorandum and Articles of Association and the Rules of the
Mutual.

Each member will also receive a Cover Wording and a
Certificate of Entry dictating the terms of entry, excess levels
and cover limits.

Where can more information be found?
Visit the AIM website www.activitiesindustrymutual.co.uk
Email us at info@activitiesindustrymutual.co.uk

Or call
James Willis on 01892 888314
james.willis@rmml.com
Iain Hall on 01892 888 317
iain.hall@rmml.com