A mutual benefit society is a society for mutual assistance which, without conducting commercial insurance operations, offers endowment, illness or pension insurance.
These societies are regulated by the Mutual Benefit Societies Act (1972:262). Mutual benefit societies must be registered with FI and are also subject to our supervision.
The Mutual Benefit Societies Act was repealed through the Act (2010:2044) on the Implementation of the Insurance Business Act (2010:2043). According to the Implementation Act (section 7, point 1), mutual benefit societies registered prior to 1 January 2011 may continue to conduct their business during a transition period or until it has received a decision that has entered into force regarding authorisation to conduct insurance business as an insurance undertaking (i.e. as an insurance company, a mutual insurance company, or an insurance an insurance association.
Parliament decided to amend section 7 of the implementation provisions. The amendment entered into force on 1 July 2019 and extended the transition period to the end of 2020 or, if the mutual benefit society conducts occupational pension insurance activities, until the end of April 2020.
If an application for authorisation in accordance with Chapter 2 of the Insurance Business Act has not been submitted before the end of the transition period, or if it is rejected, the society must enter into liquidation.
It is possible to request exemptions from certain parts of the Insurance Business Act when applying for authorisation; for more information refer to Chapter 1, section 19b of the Insurance Business Act.
Mutual benefit societies that will close down or have closed down their operations shall notify FI of this. The notification of close-down consists of two stages. First, the society must submit a notification of winding down and then a notification of deregistration.