Insurance claims FAQs
Claims against insurers
1. What would FSCS do if a large insurer were to become insolvent?
FSCS's role is to protect policyholders. The Scheme would work with the insolvency practitioners, who would be responsible for the ongoing administration of the firm and the settlement of claims, to determine our involvement.
Any queries relating to policies or claims would be directed in the first instance to the insolvency practitioners.
FSCS would work with the insolvency practitioners to ensure that policyholders had clear instructions on how to make a claim and what to do if they need immediate assistance.
FSCS can provide funds to meet protected claims, including return of premiums, if a firm is unable to do so. The Scheme can also try to arrange (or assist) a transfer of some of the business to other insurers, if this is cost effective and practical.
2. How long would it take to settle claims and make payments to policyholders?
The appointed insolvency practitioners would be responsible for processing claims for compensation. However, FSCS would work with the insolvency practitioners to enable payment of claims as quickly as possible. We would want to prioritise policyholders facing immediate hardship.
