Q&As about Insurance

1. What would the FSCS do if a large insurer were to become insolvent?

The FSCS's role is to protect policyholders. The Scheme would work with the insolvency practitioners, who would be responsible for the ongoing administration of the firm and the settlement of claims, to determine our involvement.

Any queries relating to policies or claims would be directed in the first instance to the insolvency practitioners.

The FSCS would work with the insolvency practitioners to ensure that policyholders had clear instructions on how to make a claim and what to do if they need immediate assistance.

The FSCS can provide funds to meet protected claims, including return of premiums, if a firm is unable to do so. The Scheme can also try to arrange (or assist) a transfer of some of the business to other insurers, if this is cost effective and practical.

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2. How long would it take to settle claims and make payments to policyholders?

The appointed insolvency practitioners would be responsible for processing claims for compensation. However, FSCS would work with the insolvency practitioners to enable payment of claims as quickly as possible. We would want to prioritise policyholders facing immediate hardship.

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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


having insufficient assets to meet due debts or liabilities.