Medical intermediaries have joined the backlash against the proposed 57% increase in this year’s Financial Services Compensation Scheme (FSCS) levy.
The Association of Medical Insurance Intermediaries (AMII) said the increased levy for 2011-12 is “unfair, excessive and totally inappropriate”.
The FSCS’ draft funding requirement for insurance intermediaries has increased to £93.5m compared with £61m for the current financial year.
AMII chairman Andrew Tripp said: “This increase is on top of a massive eight-fold increase last year and is mainly a result of compensation payments for payment protection insurance (PPI) misselling.
“As almost all AMII members never sold any of these policies, it is unfair that they are footing the bill on an equal basis. This huge increase has come out of the blue totally and will have a serious impact on many intermediaries.”
“The substantial rises in regulatory costs over the last two years could cause some intermediaries to leave this market altogether, reducing consumers and businesses access to independent specialist advice on private medical insurance”
AMII said the FSA should immediately review the funding of the FSCS rather than leave it on hold for another year because the financial damage to smaller intermediaries could have a serious impact on growth and jobs.
Source: Insurance Times
