FSCS passes £1bn of insurance compensation

The Financial Services Compensation Scheme has now paid out more than £1bn in insurance compensation and nearly that much to consumers for “defunct IFAs”

The scheme protects a range of policies, from motor and home insurance to life policies.

It added that thousands of consumers are better off due to protection for investment advice, with the scheme having paid out more than £975m in compensation to consumers after the default of financial advisers or firms.

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The FSCS has dealt with the default of 2,391 independent financial advisers since it was set up in 2001, while handling more than 165,000 claims.

Mark Neale, FSCS chief executive, said: “People rely on their insurance to protect them when things go wrong, and we protect their insurance if the worst should happen.”