Policyholder protection schemes

Policyholder protection schemes are safety systems that safeguard the interests of insurance policyholders if an insurance company becomes financially unstable or insolvent. These schemes ensure that policyholders still receive claims payments, benefits, or coverage they are entitled to, even if the insurer can no longer meet its obligations. They act as a safety net, maintaining trust in the insurance market by providing financial security and reassurance for policyholders, ultimately helping to protect their investments and coverage in challenging situations.