£40m levy refund 'reflects recoveries and lower than expected claims volumes'
General insurance companies will benefit from a £40 million pound levy refund from the Financial Services Compensation Scheme (FSCS) in the New Year.
Loretta Minghella, FSCS chief executive, said: “This refund is good news for general insurance firms. It reflects the continuing recoveries we have secured from the estates of general insurance providers who have gone bust, as well as lower than expected claims volumes and compensation payments.”
The FSCS expects to pay the refund, which will benefit some 250 firms, in January 2008. The industry funds the scheme through a levy and firms pay the levy into contribution groups according to their area of business.
Coming before the FSCS funding system changes in April, the refund will only apply to the general insurance contribution group (A3).
