The Financial Services Compensation Scheme (FSCS) will soon protect the total value of people's annuities, it has confirmed.
The scheme will cover 100% of the value of annuities in the event an insurer fails from 3 July. Currently only mandatory insurance products, such as car insurance, are fully protected, with all other insurance policies awarded 90% protection with no upper limit. The move followed a consultation by the Prudential Regulation Authority (PRA) last October, which called for greater protection for those policyholders "who may find it difficult to obtain alternative cover, or who are locked into a product". The regulator issued a policy statement in April, which confirmed the move. It ...
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