Q&As about Insurance Intermediaries


1. What should I do if I have a claim against an insurance broker?

If you have a claim against an insurance broker that is unable to pay your claim, for example because it has stopped trading or has 'disappeared', please contact us.

If an insurance broker becomes insolvent, the liquidator or FSCS will get in touch with you to explain what is happening to your policy or claim. It may be possible to transfer your policy, or otherwise ensure that your cover will continue. If not, you may be entitled to receive compensation.

We will work with the firm or its liquidator in dealing with claims. We will try to do so as quickly as possible, but both FSCS and the liquidator are subject to certain legal requirements and, if there are a large number of policyholders, some delay is likely.

If you think you have a claim but are not contacted, or if you are worried about what is happening with your claim, please contact us.

If we can help with your claim, we will write to you to ask you to complete a detailed application form.

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2. Why do I have to fill in an application form?

The application form tells us what type of claim you have and why you believe you have a claim. It also gives us the authority we need to collect information relevant to your claim.

Please provide as much information as you can, answer all the questions and provide any documentation that you have.

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3. How long will it take to process my claim?

The length of time a claim takes to process will depend upon a number of factors, like the type and complexity of a claim, and the level of information we need to gather from other sources. Some of these factors may be entirely outside our control, but we are still able to provide general guidelines for each claim type.

If you are facing particular hardship, we will try to deal with your claim as a priority. If this is the case please contact us.

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4. Can you compensate companies as well as people?

The Scheme was set up mainly to assist private individuals, although some smaller businesses are also covered.

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5. The FSCS says it cannot help me. Why not?

There are limits to the protection that FSCS can provide. For example, FSCS can only consider claims relating to advice on policies or arranging of policies on or after 14 January 2005, and only against firms that were authorised to arrange insurance by the Financial Conduct Authority (FCA) at the date the policy was arranged.

The FCA is the independent watchdog set up by government to regulate financial services in the UK and protect the rights of consumers. You can check whether a firm is authorised by using the FCA's firm check service or by telephoning the FCA's Consumer Helpline on 0800 111 1234.

Insurance brokers first became regulated by the FCA on 14 January 2005.

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The FCA

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 FOS

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

Jargon Buster

FCA

The Financial Conduct Authority is the UK's regulator for the financial services industry. 

FSA

Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.