PPI fallout continues with FSCS annual levy

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General insurance brokers could be hit with a £20m bill from the Financial Services Compensation Scheme (FSCS) and a further £40m hike next year as the fallout from payment protection insurance (PPI) continues.

The prospective one-off interim charge may be necessary to cover additional costs of meeting PPI claims for 2009/10. In addition, the FSCS has also predicted a huge leap in levies for general insurance intermediaries in its 2010/11 budget. Prior to this announcement, just £8.5m had been raised through brokers, but next year's estimate now stands at £50.5m. The FSCS is taking this action due to the significant increase in the number of PPI cases it is dealing with, a figure it expects to double next year. The news is better for advisers in the Life and Pensions sub-class, who loo...

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