Magazine date:
Jan 2023 A government-controlled fund was established in 1975, the Policyholders Protection Board. It is funded thanks to a contribution of up to 0.8% of written premiums. These are levied on all licensed insurers. They are designed to compensate policyholders who are victims of an insurer's bankruptcy.
This scheme guarantees the claims of policyholders and beneficiaries of insurance contracts up to 100% of the sums due in compulsory insurance and 90% in other classes of business.
Lloyd's, which has had its own compensation system since 1982 in the event of the bankruptcy of one of its members, does not benefit from the Policyholders Protection Board mechanism.
Read also | List of the main guarantee funds by country [4]