Following the collapse of Independent Insurance, the insurance industry faces a call for up to £200m from the Policyholders Protection Board (PPB).
The PPB is authorised to raise a levy of up to 0.8% of the premiums written by authorised insurers in the UK for appropriate classes of risks. Taking the volume of premiums written, a call for up to £200m is possible.
The PPB primarily reimburses individual policyholders and companies with compulsory commercial insurance, notably employer's liability insurance.
Most classes of commercial insurance are not protected by the PPB.
