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Small insurance firms in the U.K. are reeling from the pandemic

An FCA study found that thousands of financial services firms in the U.K. are at risk of failure due to the economic fallout from COVID-19.

The Financial Conduct Authority (FCA) has today published the results of its coronavirus (Covid-19) financial resilience surveys. The surveys were sent to solo-regulated firms to inform the FCA of the impact of coronavirus on firms’ financial resilience. (Photo: IR Stone/Shutterstock) The U.K.’s Financial Conduct Authority released the findings of its coronavirus financial resilience surveys. (Photo: IR Stone/Shutterstock)

Thousands of small financial services firms in the U.K. are facing failure as a result of the global COVID-19 pandemic, according to a new study from the Financial Conduct Authority (FCA). The British regulator surveyed 23,000 small-to-midsize solo-regulated firms to understand the real-time effects the pandemic is having on the businesses’ finances.

The FCA survey found that 4,000 financial services firms had low financial resilience and were at heightened risk of collapse in October 2020, with 30% having the potential to cause harm in failure, said Sheldon Mills, executive director of consumers and competition, in a press release.

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Heather A. Turner

Heather A. Turner

Heather A. Turner is the managing editor of ALM's NU Property & Casualty Group. She can be reached at [email protected].

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