General insurance brokers could be hit with a £20m bill from the Financial Services Compensation Scheme (FSCS) and a further £40m hike next year as the fallout from payment protection insurance (PPI) continues.
The prospective one-off interim charge may be necessary to cover additional costs of meeting PPI claims for 2009/10. In addition, the FSCS has also predicted a huge leap in levies for general insurance intermediaries in its 2010/11 budget. Prior to this announcement, just £8.5m had been raised through brokers, but next year's estimate now stands at £50.5m. The FSCS is taking this action due to the significant increase in the number of PPI cases it is dealing with, a figure it expects to double next year. The news is better for advisers in the Life and Pensions sub-class, who loo...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes