P2P Insurance

You are aware of the Provision Fund (or similar named schemes) several UK platforms have?
Assuming the answer is yes, so you consider the remaining risk after this, to be high enough to consider seeking additional insurance?

They are covered by its replacement the Financial Conduct Authority, where the platform is one that is regulated by the FCA. That cover does not include the FCA paying for any of the losses, but does include the FCA requiring that the platform treat lenders fairly and have in place things like debt collection procedures.
Are you sure that you didn't really get it back from the Financial Services Compensation Fund? The FSCS borrowed money from the BoE to fund the payments to just about all consumers and small businesses in the UK. That was in turn funded by a levy on the industry to repay the loan over many years.

The FSCS does not cover normal ups and downs of investments. It does cover many mainstream investments in cases of fraud by the company offering the investment. It does not cover P2P in any way.


For most platforms the loan servicing would just be transferred to another company and the loans would continue to make their interest payments as normal. Most here means the platforms where the loan is not to the platform itself.

Where a loan is actually to the platform then what happens depends on the specifics of the platform, loan and its security, if any.

For example, in the case of MoneyThing the loan is "to" the platform but secured on the security taken by the underlying lender, which in turn is the objects pawned by the original consumer borrower who pawned the item.