The Financial Services Compensation Scheme – Not quite what you think

Anyone who issues blanket assurance to the effect that a policyholder’s interests will be fully protected by the FSCS is likely to be wrong. 

Insurers have paid out millions for BI claims that had never been expected.  Some brokers’ clients might question the solvency of some insurers.  What assurances should a broker or insurer provide?  

Should a policyholder simply be advised that they will be protected through the FSCS if the worst happens and the insurer becomes insolvent?

Does the FSCS apply to businesses as well as consumers?    

We look at the scheme’s limitations below.