Broker pot FSCS compensation ticks up to over £700,000
Claims against the general insurance distribution class, in which brokers sit, resulted in the Financial Services Compensation Scheme paying out £722,000 in the year ended 31 March 2025.
This was up on the £629,000 paid out the year before.
The latest total was entirely driven by legacy issues as there were no new firm failures during the 12 months.
Overall, there were 171 cases where the FSCS signed off the claim and the average payout was £4223.
As in previous financial years, most claims related to payment protection insurance.
The FSCS did not hit brokers with a levy in 2024/25 and met the bill from surpluses that had previously built up.
This May, the FSCS confirmed brokers
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