FSCS reveals early forecast of no broker levy in 2026/27
The Financial Services Compensation Scheme has indicated brokers will not have to pay a levy in 2026/27 which would keep the rate at zero for the fourth year in a row.
The FSCS detailed the general insurance distribution class in which brokers sit has only caused £400,000 of compensation costs to be paid out in 2025/26 so far with no large bills on the horizon.
When the compensation scheme set the broker levy at nil for 2025/26 the sector had a surplus of £4.6m.
Our recoveries help to offset the levy for firms and ensure those most responsible for financial harm are held to account.Martyn Beauchamp, CEO of the FSCS
After the low compensation payouts, and
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Insight
Blog: When does optimism topple over into delusion?
The Biba Conference last month was a triumph, and the lyric that united every insurance conversation in the city was growth. But the unbridled optimism about growth almost always came with the bassline ‘have you heard about the crazy rating in the market?’ Emmanuel Kenning interprets the notes asking if maybe for once it really is time to shrink to greatness.
Hiscox highlights SMEs as it joins ChatGPT UK advert pilot
Hiscox UK has pointed to the changing “conversational” nature of insurance searches, including by SME owners, as it confirmed it is taking part in a pilot through agency partner Dentsu to explore advertising in ChatGPT.
Northern Ireland aggregator alerts drivers on ghost broking signs
Aggregator CompareNI has reported 49% of Northern Ireland drivers admitted they could not spot a fake insurance policy as it urged motorists to lookout for the telltale signs of ghost broking.
Thomas Carroll becomes South Wales Premier Cricket League sponsor
Thomas Carroll has begun its sponsorship of the South Wales Premier Cricket League.
People Moves: 1 – 5 June 2026
Follow the latest personnel moves in insurance.
Blog: Will service fall after insurer staffing cuts or is this business as usual?
As insurers make staffing cuts, Rosie Simms explores if brokers will see service levels drop or if it will be business as usual.
SSP unveils AI platform to accelerate MGA and insurer product launches
SSP UK and Ireland has launched an artificial intelligence powered product configuration platform designed to speed up product releases by managing general agents and insurers, as it has joined the Managing General Agents’ Association.
Flood Re rolls out consumer campaign
Flood Re has launched a UK-wide educational tour promoting flood resilience and encouraging people to rethink the response to flood risk, with the joint initiative between the government and insurers using “the UK’s largest digital advertising van”.