Compensation scheme extension to insurance of EEA risk

UK and EEA risks written under long-term or general insurance policies issued through EEA branches of UK insurers will be equally eligible under the Financial Services Compensation Scheme (FSCS) if proposals in CP08/9 are confirmed. As matters stand, policies issued by a UK insurer through a foreign EEA branch to cover a UK risk are protected under the FSCS but if the policy relates to a non-UK EEA risk it is not covered.