Scottish Friendly Assurance Society Limited
The Scottish Friendly Assurance Society Limited began life in the heyday of the formation of friendly or mutual societies during the nineteenth century. Originally named the City of Glasgow Friendly Society, it was founded in 1862 as an offshoot of the Royal Liver Friendly Society which had been formed in Liverpool.
The Society enjoyed immediate success and growth in Scotland, where it opened further offices in Aberdeen, Bathgate, Edinburgh and Perth during just the first nine months of its existence. Within just five years, it had opened still more offices throughout the UK in Belfast, Blairgowrie, Dairy, Kilsyth, Kilwinning, Kirriemuir, Kirkwall, Leeds, Manchester, Sunderland and Troon.
By the close of 1884, the Society claimed a membership of around 70,000.
Principles of the friendly society
Friendly societies grew up as collections of individuals prepared to pool their financial resources in order to help each other – hence the names friendly and mutual.
Unlike other forms of corporation, there are no shareholders, but solely the members, whose interests the mutual society exists to promote – many of the early friendly societies, including the City of Glasgow Friendly Society existed to ensure that members were able to save enough to ensure a decent burial at the end of their days.
By 1962, the Society had become the fifth largest mutual company in the UK, with 20 offices throughout Scotland, 24 in England, 5 in south Wales and 6 in Northern Ireland.
The principles of the friendly or mutual society continue to this day, in so far as there are no shareholders but only the members’ interests to pursue – but the range of financial activity has grown enormously.
Having performed an essentially traditional role as a friendly society throughout the 19th and 20th centuries, the Glasgow Friendly Society was renamed the Scottish Friendly in 1992, although its principal focus of business remained the provision of life insurance.
Despite the name change, however, the company remains faithful to its mutual tradition and continues to plough back its profits solely for the benefit of its members rather than any shareholders.
Landlords typically have a number of priorities when it comes to protecting their capital investment in let property and avoiding disruption to their business, namely:
- insurance cover that extends to the building and its contents against such major risks as fire, flooding, impacts, storm damage and vandalism;
- protection against claims arising from the landlord’s liability as a property owner or as an employer; and
- some form of compensation for the loss of rental income in the event of an insured incident.
Scottish Friendly landlord insurance
The principal focus of Scottish Friendly’s products continues to be life insurance, although it has also added savings and investment products to its list.
To date, this does not include any diversification into the field of general insurance, so there is no product designed as cover for landlords.