FSCS carries out regular audits on the larger insolvent insurance firms to ensure that claims are being handled effectively and economically. The audit programme is tailored to the particular firm.
A full audit report containing the key findings and FSCS's recommendations is issued to the insolvency practitioner and the relevant run-off agent within 20 working days of an audit being undertaken.
Audits are carried out for those estates that account for 93% of FSCS's current insurance compensation expenditure. Generally, the results continue to improve and we are able to make recommendations aimed at promoting pro-active claims management and cost control.
Due to the benefit of the audit programme feedback and the improvements in communication between FSCS and its stakeholders, the programme is being extended to include defence solicitor work and the processes and procedures in all areas of estates in run off.
The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).