Financial Services Compensation Scheme Levy

Much has been said recently in the press and televison of the mis-selling of PPI (Payment Protection Insurance) by numerous banks and finance companies over the years, some of whom have now gone into administration.

The Financial Services Compensation Scheme (FSCS) is picking up the tab for claims of those mis-sellers who are no longer trading. This amounts to tens of millions of pounds. We have never sold such cover but unfortunately, as far as the FSCS is concerned, we and all other insurance brokers are classed in the same general insurance category as those that sold these policies.

Through Ten Insurance our contribution into the compensation fund recently increased by over 1,000% and it is likely to increase further later this year.

Unlike a number of other brokers we remain adverse to charging unwarranted fees and we have tried to absorb this cost ourselves. However with the significant increase imposed it is no longer possible for us to continue this and we have to pass on these costs in the form of a £2 per policy fee. We regret having to impose this fee and we can assure you this is merely being used to cover part of the levy.