Insurance Brokers Left Stunned by Extreme FSA Charges
The Financial Services Authority, an independent body and regulator of all providers of financial services in the UK, did warn of a likely rise. They claimed early on that the current economic climate has meant more demand for more regulation and therefore they have needed to increase costs to cover this. However, the impact of this on small businesses will be significant.
Insurance brokers in particular have been targeted as part of the Financial Services Compensation Scheme (FSCS) as the regulator found several guilty of misselling. However, brokers have responded to this angrily, arguing that they should not be forced to cover PPI misselling as they do not draw on the protection if unwarranted.
The FSA are currently looking at the situation, with the results of a review due to be released for brokers of car, van, home, bike and HGV Insurance, among others, out in November or December.
Flint Insurance, experts in truck and lorry Insurance, commented: 'The fees process does need this review of the FSCS and we are hoping that it brings with it some changes. November or December will be a crucial time for insurance brokers everywhere, who will all be hoping that there will be some relief from the FSA in the future'.
Insurance brokers will indeed all be anticipating the results of the review towards the end of the year and as they feel that banks have played a large role in misselling PPI, rather than insurance brokers, there will be some hope that this will be recognised. Hopefully, the fee charges system will be looked into to provide some relief to SMEs.
About Flint Insurance:
Based in Sidcup, Kent, Flint Insurance is an independent broker offering motor fleet insurance to companies from across the UK. By using a panel of leading insurers, they can offer the most appropriate cover and the most competitive quotes. To find out more, visit: www.flintinsurance.co.uk.
