The Financial Ombudsman Service (FOS) has recently announced a number of changes to its Terms of Reference. A useful summary of the changes can be found here.

The changes which those selling or purchasing insurance might wish to consider are: 

  • From 1 January 2016, disputes by small businesses over business interruption (or ISR) insurance can be referred to FOS for determination. Small businesses are those manufacturing businesses with less than 100 employees, or any other business with less than 20 employees.
  • General insurance broking disputes will also fall within the ambit of FOS from 1 January 2016.
  • There has been some indexation of compensation caps, which differ depending on the type of dispute. The general cap is now $309,000.