The Financial Services Compensation Scheme has confirmed that insurance providers and insurance distributors will not have to make a contribution towards the industry funded body for 2024/25.

In a report, the FSCS said: “Firms won’t be required to pay a provider contribution to the General Insurance Distribution class in 2024/25.”

In relation to insurance distributors, it added: “There will be no levy required for firms in this class as we’re not expecting any new firm failures. We’re also continuing to see a decrease in Payment Protection Insurance claims, which continue to be the main type of claims in this class.”