A fresh approach to safeguarding for the payments industry. We help payments firms meet their obligations through a specialist insurance solution designed around the evolving regulatory environment.
Safeguarding is a critical responsibility for payments firms. As regulatory requirements continue to evolve, businesses need solutions that provide confidence while remaining practical and efficient to implement.
Created alongside external legal professionals, our Safeguarding Insurance solution has been developed to meet the requirements of existing regulations and the new safeguarding regulations taking effect in May 2026.
Our approach is policyholder-focused, combining specialist payments-sector expertise with access to established insurance markets to help you secure appropriate protection.
We can obtain Safeguarding Insurance coverage of up to £40m, helping firms secure meaningful protection aligned to their requirements.
All insurers we work with for this solution have a financial rating of at least A-, including established insurance companies and Managing General Agents (MGAs).
While FCA regulations (PS25/12) mandate annual safeguarding audits for most firms from May 2026, BMS does not require a separate or additional audit in order to provide quotes.
Pricing is determined by each firm's individual risk profile, with rates typically ranging between 1%–2% of the limit purchased.
Our team has more than a decade of experience advising clients across the payments sector. Clients have direct access to senior specialists with experience supporting businesses through both placement and claims. Our Financial Lines capabilities also include Professional Indemnity, Directors' & Officers' Liability, Crime and Cyber, enabling us to look beyond a single policy and understand the wider risk landscape facing payments businesses. The wider BMS Group provides capabilities across additional areas including Employee Benefits and General Liability.
To obtain a quote, we'll typically ask for:
• Latest Report and Accounts, including P&L and Balance Sheet
• Latest safeguarding audit
• Existing PI, D&O, Crime and Cyber insurance policies
• Business plan and/or investor presentation
• Details of the intended use of Safeguarding Insurance
• Confirmation of the designated safeguarding account into which payment would be made in the event of a claim.
We have refined the placement process to reduce the paperwork, cost and time involved in securing suitable Safeguarding Insurance. Following an introductory conversation to understand your needs, we'll work with you to gather necessary information and approach appropriate insurers. Once the required information has been received, we aim to provide feedback within 5–7 working days.
When change is a constant, you want to stay informed and stay ahead at all times.
All insurance capacity supporting BMS Safeguard are provided by insurers with a financial strength rating of at least A. We access this capacity through established insurance companies and Managing General Agents (MGAs).
We work to a pace that suits you. Where required, we have completed placements in under a month.
The exact timing will depend on the level of cover required and the quality and depth of information that outlines your safeguarding policies and procedures.
BMS Safeguard was launched for UK firms in January 2026. We are also working with firms across a number of EEA territories and other international markets. Availability depends on the applicable local regulatory framework and insurer appetite, so please speak to our team about the territories relevant to your business.
Pricing is determined by each firm's individual risk profile and the level of cover required. As a guide, rates typically range between 1% and 2% of the safeguarding insurance limit.
Support growth while using liquidity more efficiently
As customer balances grow, the amount required to be maintained within safeguarding arrangements can increase significantly. Insurance can provide firms with greater flexibility over how those safeguarding obligations are met.
Create greater flexibility in safeguarding arrangements
Insurance can be used alongside segregation as part of a hybrid model, allowing firms to structure their safeguarding arrangements around their business model, payment flows and operational requirements.
Reduce reliance on segregated accounts
Using insurance for part of the safeguarding requirement can reduce the amount that needs to be maintained in segregated safeguarding accounts, providing greater flexibility within the firm's overall liquidity arrangements.
Improve payment and settlement efficiency
For some business models, insurance can provide greater flexibility where funds need to remain with liquidity providers or other counterparties, including payment flows involving currencies that do not settle on a T+0 basis.
Our team can provide an initial view on how the solution could be structured, insurer appetite, indicative pricing and the information required to approach the market.
Whether you're exploring Safeguarding Insurance for the first time or reviewing how insurance could form part of your approach to the new safeguarding requirements, our team is ready to help.
