Secondary insurance broker sets up redress scheme

A direct mail order and online business has agreed with FCA that it will set up a redress scheme to provide around £12.5m redress to 330,000 customers to whom it sold insurance which offered them little or no value. Express Gifts Ltd was authorised to sell general insurance, and sold cover against accidental damage and theft for products purchased from two of its brands. Most of these items were clothing items, so, although while the insurance did cover them, these were not items consumers would normally insure. The firm and FCA agreed the cover did not provide adequate value to customers, and will now contact customers to tell them how it will pay the redress due to them.