What is the maximum amount the Financial Services Ombudsman can order an insurer to pay to resolve a dispute?

The correct amount that the Financial Services Ombudsman can order an insurer to pay to resolve a dispute is £355,000. This limit is set by the ombudsman to provide a resolution framework for disputes between consumers and financial service providers, including insurers, ensuring that consumers have a clear understanding of the maximum compensation available if they encounter issues with their insurance providers.

This amount reflects the ongoing evolution of the ombudsman service and its adaptation to the changing financial landscape, ensuring adequate consumer protection while also considering the financial stability of providers within the insurance sector.

Other amounts mentioned, such as £50,000, £150,000, and £500,000, either do not align with the established limit set by the Financial Services Ombudsman or exceed the maximum compensation available, thereby failing to accurately represent the current regulatory framework in place for resolving such disputes.