global insurance management

FSCS Levy


Apr 11 2011

We are very pleased to advise firms that in the final reckoning, the FSCS budget for 2011/12 has been reduced by £23m to £217m but we are even more pleased to see that the levy for general insurance intermediaries will now by £69.5m, still an increase ( up from £61.4m) but a much smaller one than initially proposed.

Apparently, some of the reasoning is that although the volume of PPI claims is expected to rise it will be less steep than had been assumed.

We reminded firms of the benefit of using “tailored income” figures and we still advocate this exercise.  However, we also recognise that the impact for this has been reduced now that the levy is a lot less than previously indicated.

Unfortunately, the same cannot be said for the Life and Pensions sub-class, which sees the levy more than double, due to a re-assessment of claims anticipated from that sector.

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