In its latest outlook publication, the Financial Services Compensation Scheme has confirmed that general insurance brokers will not have to pay an annual levy for 2025/26. The levy for general insurers was confirmed at £85m, down from the £90m previously estimated. The FSCS said the total levy payable by firms for the 2025/26 financial year had decreased from £394m to £356m.

Martyn Beauchamp, chief executive at the FSCS, said: “In 2024/25 we had another strong year of recoveries, recouping more than £56m from the estates of failed firms and relevant third parties. This led to higher opening balances carried forward from 2024/25 in certain classes. These recoveries put money back into the financial services sector and to the customers who use it, helping to build trust and confidence in the sector.

“We have now fully transitioned to our new claims service operating model. We delivered a high volume of customer claim decisions last year while maintaining our strong customer satisfaction and quality scores, and our aim is to continue this combination of deep purpose and high performance through the 2025/26 financial year.”