How We Work

As a hybrid discretionary mutual, FRIC offers a combination of discretionary protection from FRIC backed by supporting insurance for statutory classes and large individual/aggregated losses.

Members pay contributions instead of premiums, and these funds are pooled to cover the running costs of the Mutual and agreed claims made by the Members. Individual losses within FRIC’s retention are paid from the pooled funds on a discretionary basis as set out in FRIC’s Rules and Protection Wordings, with amounts over FRIC’s retention paid by the supporting insurers. Transparency, sustainability and fairness are at the core of the FRIC proposition to ensure Members pay contributions based on their risk and performance.

All Members have equal voting rights irrespective of size or contribution. The Board of Directors is appointed from within the Membership and is responsible for running the Mutual and taking important decisions, while the day-to-day management is outsourced to a specialist mutual management company.

FRIC protection runs annually from 1st November but new Members may apply to join from any date with their contribution being adjusted for a shorter first period. The application process takes around 12 weeks and is set out in detail in the New Member Guidance Pack.