Insurance

You may be entitled to claim compensation if your insurer has failed and was authorised by the Prudential Regulation Authority.
 
There are two main types of insurance contract: general insurance and long-term insurance. General insurance covers most types of insurance, for example, home insurance, car insurance or pet insurance. Long-term insurance includes life assurance and pensions.
 

Insurance

Insurance firms

 

If your insurer fails, how much compensation you could claim depends on the kind of insurance you have. We split insurance into two main categories: general insurance and long-term insurance.

General insurance

Examples of general insurance include:

  • Accident/sickness/unemployment.                            
  • Buildings/contents.
  • Car and motor vehicle.
  • Third-party liability, including employers’ and professional liability.
  • Travel.
  • Pet.

If your UK-authorised insurer fails we may be able to compensate you:

  • 100% for compulsory insurance claims (e.g. third-party motor and employers' liability).
  • 90% for non-compulsory insurance claims  (e.g. pet) with no upper limit.

Note that no protection is available for goods in transit, marine, aviation and credit insurance. Contracts of reinsurance are also not protected.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

  • 100% protected for compulsory insurance claims (e.g. third-party motor and employers' liability).
  • 90% protected for non-compulsory insurance claims (e.g. pet).

Note that no protection is available for goods in transit, marine, aviation and credit insurance. Contracts of reinsurance are also not protected.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

  • 100% protected for compulsory insurance claims (e.g. third-party and employers' liability).
  • 100% of the first £2,000 plus 90% of the remainder with no upper limit for non-compulsory insurance claims (e.g. pet).

Note that no protection is available for goods in transit, marine, aviation and credit insurance. Contracts of reinsurance are also not protected.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

  • 100% protected for compulsory insurance claims (e.g. third-party motor and employers' liability).
  • 90% protected for non-compulsory insurance claims (e.g. pet).

Note that no protection is available for goods in transit, marine, aviation and credit insurance. Contracts of reinsurance are also not protected.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

Long-term insurance

Examples of long-term insurance include:

  • Life insurance.
  • Permanent health/incapacity insurance.
  • 100% protected with no upper limit.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

  • 90% of the claim with no upper limit.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

  • 100% of the first £2,000 plus 90% of the remainder.

The claim process can vary depending on the failed insurance firm and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance firm’s website.

Insurance brokers

 
You may be entitled to claim compensation if your insurance broker (also known as an intermediary) has failed and was authorised by the Financial Conduct Authority.
 
Here are some examples of areas of insurance broking that may give rise to claims if an authorised firm cannot pay claims against it:
 
  • If the firm had not yet placed cover with an insurer before the date it went out of business, you could be entitled to a return of premium or payment of a claim if one was outstanding at that date.
  • If the firm doesn’t place sufficient cover for you or fails to tell you about a relevant exclusion in the contract, which causes the insurer to reject the claim.
  • Fraud, for example, if the broker inflates premiums for their own gain, or fraudulent selling, where the broker tells you you’re covered but no insurer actually exists.
  • If the firm uses a secondary broker to arrange cover for its customers and the secondary broker becomes insolvent before passing premiums to an insurer. In this case, all of the firm’s customers may suffer if there is a shortfall in client monies. FSCS may be able to pay compensation for any financial loss incurred as a result of this.

Insurance

Insurance brokers

We may be able to compensate you if your insurance broker (e.g. if a broker mis-sold you insurance) fails.

  • 90% of the total claim.

 

  • 100% of the first £2,000 per eligible person, per firm, then 90% of the remainder.

 

How long will the insurance claim process take?

3 months

FSCS aims to make a decision on your claim within 3 months of receiving your completed application and required evidence. Complex claims may take longer.