The British Insurance Brokers’ Association has welcomed a reduction in the controversial Financial Services Compensation Scheme (FSCS) levy on general insurance intermediaries.

This year’s levy has been cut to £38 million ($69 million) from an estimated £62 million ($112 million) published in January, after the association protested.

“We were concerned the figure was too high and that with payment protection insurance claim activity slowing down that the levy should reflect this too,” CEO Steve White said.

He says the reduction is “great news for brokers for this summer’s bills”, but there is more work to be done.

“We will continue to fight on for further FSCS fairness for members.

“We have our alternative funding model drawn up and ready for the next opportunity to push for a review of the current unfair system.”

The overall FSCS levy for all types of financial services companies has been cut from an estimated £313 million ($566 million) to £276 million ($499 million).