Informa Insurance News 24
FCA RAISES FEES TO RECOVER £7.5M COST OF BI TEST CASE
The Financial Conduct Authority (FCA) has set out plans to increase the fees levied on regulated firms to help fund a 4.5% increase in its annual funding to £616.5m. In a consultation, the FCA also proposed a “special fee” to recover the cost of the Covid-19 business interruption test case from insurers. The FCA said: “Our action in taking the test case is likely to have saved insurers and policyholders significant legal costs as well as bringing all parties clarity on the issues much more quickly than would otherwise have been the case… We are proposing to recover the estimated £7.5m of external legal and other costs through a BI insurance special fee levied through the 2 fee-blocks that include insurers that write non-damage BI insurance.” The special fee will apply to 295 insurers and 50 managing general agents, but the eight insurers that took part in the test case would be exempt under the proposals.