| Link(s): | FSCS publishes its 2022/23 Annual Report and Class Statements | FSCS Annual Report 2022/23 | FSCS |
Context
In its Annual Report and Accounts and Class Statements, FSCS outlines the vital work it carried out during the past financial year. FSCS helped approximately 68,000 customers get their lives back on track during 2022/23, either paying customers compensation or enabling them to transfer to a new investment or insurance provider.
Key points to note
- FSCS’s total compensation costs were £403m. The majority of claims were in relation to investment and pension advice, as well as self-invested personal pension (SIPP) operator failures. There were also a number of claims paid out to customers for insurance firm failures from previous financial years.
- In total, more than 430 firms were investigated to confirm their solvency status, and to confirm whether any of their former customers would have eligible claims.
- In 2022/23, FSCS recovered a total of £15m, of which approximately £12m was used to offset our levies. The remaining £3m was passed on to customers whose claims were above the organisation’s compensation limits.
- for the year ending 31 March 2023, FSCS paid £163m in compensation for general insurance providers, £23m less than the year before. The FSCS has attributed this reduction to the fact that there were no new insurance firm failures in 2022/23.
- FSCS paid out £2m in general insurance distribution compensation costs in the year ended 31 March 2023 – a £5m drop on the previous 12 months. The pot in which brokers sit paid £5.3m in levies for the year. The FSCS detailed that the fall in compensation costs came after no new firm failures.
Next actions
None – for information and awareness.