Which type of regulated general insurance brokers does the Financial Services Compensation Scheme protect?

The Financial Services Compensation Scheme (FSCS) is designed to offer protection to consumers in the event that a financial services firm fails and is unable to meet its obligations. In the context of regulated general insurance brokers, the FSCS provides coverage to all regulated brokers, regardless of the number of employees they have or their annual turnover.

This comprehensive protection is crucial as it ensures that clients and policyholders of any regulated general insurance broker can recover their money in cases where the broker becomes insolvent. The FSCS plays a vital role in maintaining public confidence in the insurance market by safeguarding consumers against the risks associated with the failure of insurance brokers. Such a framework encourages consumers to engage with regulated firms knowing they have a safety net in place, regardless of the size or scale of the operation.

In contrast, the other options suggest arbitrary thresholds related to employee count or financial turnover, which could unjustly limit the scope of protection for consumers and would not align with the FSCS's goal of comprehensive consumer safeguarding. The scheme is set up to cover all regulated general insurance brokers to ensure a level of trust and security within the industry as a whole.