British insurer Chester Street, which collapsed on January 9, will have many of its outstanding claims paid through a new industry-funded Financial Services Compensation Scheme.

The compensation scheme will pay 100% of claims made before January 9, and 90% of claims made after Chester Street went into liquidation. The move by the industry to cover Chester Street’s losses has earned praise from the British Government, as well as representatives of claimants.

The Association of British Insurers is overseeing the scheme.