The Financial Services Compensation Scheme's (FSCS) £150m levy on the insurance industry was "unsurprising", the Association of British Insurance (ABI) said.

The FSCS announced its 0.66% levy on Monday.

The FSCS's predecessor the Policyholders Protection Board (PPB) had been due to levy the industry before it was subsumed by the FSCS on 1 December last year.

An ABI spokesman said: "We anticipated a figure in this region. It's not the largest that's been levied on insurers. Nor is it the smallest."

He said most insurers would have already put the necessary money aside.

The largest levy made by the PPB was £174.8m in 1994, which was 1% of the industry's leviable income.

The lowest was £37.7m, or 0.25%, in 1992.

FSCS chief executive Suzanne McCarthy said the levy would ensure funds were available to compensate consumers promptly, including those owed compensation from the Independent Insurance and Chester Street Insurance cases.