PPI fallout continues with FSCS annual levy

clock

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

Join

 

Already a Professional Adviser member?

Login

More on Protection

The return of redundancy cover – and why it's important

The return of redundancy cover – and why it's important

Standalone unemployment insurance is making a comeback

Kesh Thukaram
clock 02 April 2025 • 3 min read
PDG responds to FCA Pure Protection Market Study update

PDG responds to FCA Pure Protection Market Study update

Expanded terms of reference

Cameron Roberts
clock 31 March 2025 • 2 min read
FCA: Protection commission ban is potential 'extreme' market study outcome

FCA: Protection commission ban is potential 'extreme' market study outcome

FCA: 'We're going into this with an open mind'

Jaskeet Briah
clock 28 March 2025 • 3 min read