The Financial Services Compensation Scheme has chosen outsourcing firm Capita to manage its claims handling service in a contract worth £37m.
FSCS claims handling processes were previously provided by three suppliers, including Capita.
Under the terms of the contract, all services relating to the FSCS’s claims handling and customer services will be managed by Capita for the next four and three-quarter years.
Earlier this month, the FSCS said it needed around £71m more than was forecast for 2018/19, with bills having being driven upwards by the British Steel pension saga and other impending claims over defined benefit pension transfers.
The agreement with Capita start from July. It also has the option of extending the agreement for up to two more years.
FSCS chief operating officer Jimmy Barber says: “This underpins our work to transform the customer experience, through investment in technology and digital development, and adds improved resilience through scale.”
The agreement with Capita will also mean the FSCS can shift to prioritise digital development.