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The Financial Services Compensation Scheme (FSCS) paid out a total of £271.m in compensation for 2015/16 down from £327m in 2014/15, according to its latest annual report and accounts. Management expenses for the year at the FSCS also decreased to £66m, compared with £71.5m in 2014/15.
The FSCS said that it had received 46,896 new claims from customers during 2015/16, which was 12.6 per cent fewer compared with the 53,662 received in 2014/15. The scheme reached decisions on a total of 51,112 claims in 2015/16, compared with 61,327 claims the previous year.
Compensation payments for the general insurance intermediation funding class (SB02) fell to £6.7m from £18.7m in 2014/15. The average amount of compensation paid per claim in the class was £2,548.49, down from £3,738.37 in the previous year. The FSCS said its uphold rate had declined from 80.3% to 75% for this class
Members may access the document by clicking here.
Mark Neale, CEO of the FSCS, said in his foreword to the report that he recognised that many firms who pay the compensation scheme’s levies have continuing concerns about the fairness of its funding arrangements. He noted: “I therefore look forward to the Financial Conduct Authority (FCA) review of FSCS funding for FCA funding classes, which is now under way, and the FCA continuing in the year ahead to engage actively with the industry in the debate on the funding model, building on the Financial Advice Market Review.”
BIBA has been meeting the FCA and FSCS as part of the funding review, to voice the concerns of members.
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FSCS publishes its annual report and accounts for 2015/16 appeared first on British Insurance Brokers' Association.
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