GIM1200 - The UK insurance market: friendly societies

Registered friendly societies are unincorporated societies set up under the provisions of the Friendly Societies Act 1974 and earlier similar legislation, and carry on types of business within the objects of that legislation.

They were first recognised by statute in 1793, but may be able to trace their origins back at least to the craft guilds of the Middle Ages. The Friendly Societies Act 1992 provided for a new breed of incorporated friendly society and gives registered societies the ability to convert into the new style incorporated society. Most “directive” societies, those large enough to be regulated under the EC Insurance Directives, have incorporated.

General business written by such societies will normally be exempt by virtue of ICTA88/S461. The treatment of taxable life or endowment business written by registered or incorporated Friendly Societies is not covered in this manual and detailed guidance can be found in the Life Assurance Manual.