Insurance

There are two main types of insurance: general insurance and long-term insurance. General insurance you’re probably familiar with; it includes home insurance, car insurance and pet insurance. Long-term insurance includes life insurance and some pension products.


FSCS may be able to protect you if your insurer fails and was authorised by the Prudential Regulation Authority (or was EEA-authorised and was passporting into the United Kingdom) – the PRA publishes a list of UK, and EEA passporting, insurers.

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), professional indemnity insurance (e.g. solicitors PI), and/or claims arising from the death or incapacity of the policyholder due to injury, sickness or infirmity.
  • 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

If your insurance broker (they might also be called an ‘intermediary’) has failed and was authorised by the Financial Conduct Authority, you may also be entitled to compensation.

Below are some typical events that could give rise to a compensation claim:

  • If the firm hadn’t placed cover with an insurer before it went out of business.
  • If the firm didn’t place sufficient cover for you or failed to tell you about a relevant exclusion in the contract, which caused the insurer to reject the claim.
  • If the broker inflated premiums for their own gain, or fraudulent selling, where the broker told you there was cover, but no insurer actually existed.
  • If the firm used a secondary broker to arrange cover for its customers and the secondary broker became insolvent before passing premiums to an insurer.

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.

 

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.

Find recently failed insurance companies by typing a name into the search box on the Find firms page.

EEA top-ups

Insurance insolvencies

How long will the insurance claim process take?

3 months

Once we’ve got your completed application and all the associated evidence we’ll aim to make a decision on your claim within three months. If it’s a complex claim it may take longer.