Insurance

If you paid for cover with an insurer that has failed, we may be able to compensate you. This is subject to conditions, limits and requirements set out by the Prudential Regulation Authority (PRA) in its rulebook.

To be eligible for protection, the company that failed must have been regulated by the Prudential Regulation Authority (PRA). 

How we protect customers

There are three ways that we can protect eligible customers of failed insurers.

1. If the policy is replaced by a new policy with a different insurer, we can pay the new insurer towards the cost of this.

2. If the policy is not replaced and eligible customers are entitled to the remaining portion of their insurance policy premium, we'll fund and process this payment.

  • Note we can only repay 90% of the calculated refund.
  • If the insurance policy is in your name but paid via a loan from a finance company that required you to assign your rights to them, we will pay any return of premium payments to them.

3. We pay either 90% or 100% of the claim value if policyholders have valid claims under an insurance policy with a failed insurer.

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This means that if the insolvency practitioner (the person/company managing the insolvency) accepts them, we will repay these claims in full:

  • Third-party motor
  • Employers’ liability
  • Whole of life assurance
  • Term life insurance and/or critical illness insurance*
  • Insured personal pensions*
  • Annuities*
  • Income protection insurance – also known as permanent health insurance or long-term disability insurance*
  • Professional indemnity insurance*
  • Claims arising from the death or incapacity of a policyholder due to injury, sickness or infirmity (e.g. a death or disablement benefit of a personal accident policy or similar benefit on a motor policy.) *
  • Building guarantee policies for firms that failed on or after 8 October 2020. Prior to this, 90% of the value of eligible claims will be repaid.

* If the firm failed on or after 3 July 2015. If before, claims are 90% protected.

If the insurer’s insolvency practitioner (the person/company managing the insolvency) accepts them, we will repay 90% of these claims.

  • Motor first party
  • Pet
  • Travel
  • Home
  • Dental
  • Health
  • Warranty
  • Public liability
  • Property

These insurance claims are not eligible for FSCS protection: 

  • Goods in transit
  • Marine
  • Aviation
  • Credit insurance
  • Contracts of reinsurance for insurance firms or brokers / financial adviser

The kind of insurance you have will affect how much compensation you could claim. See some examples of situations where you may be able to claim compensation if an insurance broker/financial adviser helped you buy your policy.

100% protected:

Compulsory general insurance

90% protected:

All other general insurance

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What happens when an insurance firm fails?

An insurance firm failure can be worrying - we explain what we'll do to cover you.
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Who gets involved?

Find out who does what when an insurance firm fails.
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Failed insurance companies

Find the company on this list of insurance firm failures.

If you bought your insurance policy from an insurance firm that’s failed, the kind of insurance you have and when the firm failed will affect how much compensation you could claim.

100% protected:

Compulsory insurance

Long-term insurance

Professional indemnity insurance

Claims arising from the death or incapacity of the policyholder due to injury, sickness or infirmity

Building guarantee policies

90% protected:

All other kinds of insurance

100% protected:

Compulsory insurance

90% protected:

All other kinds of insurance

100% protected:

Compulsory insurance

100% protected for the first £2k then 90% of the remainder

All other kinds of insurance