Insurance claims
If you have a claim against an insolvent insurer
Any queries relating to policies or claims against an insolvent insurer should be directed in the first instance to the insolvency practitioners or appointed run-off agents, who are responsible for the ongoing administration of the firm and the settlement of claims.
If an insurance firm becomes insolvent, FSCS can provide funds to meet protected claims, including return of premiums, if the 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. If it is not possible to transfer policies, or otherwise ensure that cover will continue, FSCS can pay compensation.
There are limits to the protection FSCS can provide and to the amounts of compensation we can pay.
We would work with the insolvency practitioners to try to ensure compensation is paid as quickly as possible. However, the insolvency practitioners must meet several legal requirements and, if there are a large number of policyholders, some delay is likely. Policyholders facing immediate financial hardship would be prioritised.
Details of insurance insolvencies involving FSCS
Association of Run-Off Companies
More information
For more information about claiming compensation you can download a copy of our Claiming compensation booklet. If you would like us to post you a copy, please contact us.
You might also find looking at our Frequently Asked Questions (FAQs) helpful.
Claims before 1 December 2001
Slightly different rules apply if you have a claim against an insurer that was insolvent or declared in default before FSCS became operational (1 December 2001). The claim is covered by the rules governing the Policyholders Protection Scheme, which existed before that date, although we will handle your claim. Compensation limits and eligibility may differ from the current arrangements.
