Brokers hit by further FSCS levy rise of over 50%
The Financial Services Compensation Scheme (FSCS) has announced that the general insurance mediation sub-class will have to contribute £93.5m in 2011/12 a 57% increase over last year’s levy (2010/11: £59.6m).
The news in the FSCS's Plan and Budget 2011/12 comes despite the organisation stating that its total levy bill is expected to fall from £474m this year to £240m next, a drop of 49%.
The contribution from general insurance provision has also risen to £54m (2010/11: £39.6m) meaning the combined industry bill has soared by 49% to £147.5m.
In the document the FSCS highlighted the increase in payment protection insurance (PPI) claims as a reason for the rise.
It stated: "The most significant claim
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