Friendly Societies

Updated: Aug 20, 2021

These grew out of the need of working people in the nineteenth century against financial problems arising from death or sickness when they could no longer provide for themselves or their dependants. This was before the State assumed the role of protector through the National Health Service with the provision of pensions, sick pay and later various other welfare benefits. The Friendly Societies began in a small way, usually catering for the particular area or trade which they were set up to serve. In time, some of these societies grew into nationwide mutual insurance corporations whilst others faded away for lack of either funds or purpose. The relevance of the Friendly Society today lies only in the fact that certain of the large insurance companics are still registered as Friendly Societies under the Act passed to control and protect them in 1846.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.