FCA proposes £7.5m BI special fee for insurers in levy consultation
The fee relates to legal costs following the BI test case and is part of a raft of proposed changes relating to fees and levies ahead of publication of the watchdog's budget for 2021/22.
The Financial Conduct Authority (FCA) is set to introduce a business interruption (BI) insurance special fee applying to insurers and managing agents at Lloyd’s in its budget for 2021/22.
In the document, the regulator said it wanted to recover £7.5m of external legal fees and other costs relating to the BI test case, which it brought on behalf of policyholders to provide clarity around whether BI policies would respond to the pandemic or not.
The FCA added that the case impacted on 61
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