Insurance Mediation

From 14 January 2005 the protection of the FSCS was extended to include customers of general insurance intermediaries.

FSCS will safeguard policyholders if an authorised firm is unable, or likely to be unable, to pay claims against it, for example if it has been placed in provisional liquidation or administration. This is described as being in default. For the Scheme to be able to pay compensation to consumers, we are required under our rules to declare a firm in default.

Intermediaries involved in advising on and arranging general insurance contracts could include:

  • insurance brokers
  • vets
  • car dealerships
  • mobile phone retailers.


About the FSCS

Click here to find out more about the FSCS, its role, its operations and its personnel.


The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).


The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Authorised firm

    a company, unincorporated body, partnership or individual permitted to carry out a regulated activity by the FCA or the PRA. This term includes a mutual (unincorporated) organisation, for example a friendly society.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
  • Provisional liquidation

    the start of the process whereby the affairs of a firm are wound up so that its assets are realised and distributed to discharge its liabilities.