UK compensation fund for customers of failed insurers urges brokers/MGAs to make contact
The UK’s customer compensation fund has urged MGAs/brokers and claims handling firms to help with the mess from the downfall of unrated Danish insurer Alpha.
Alpha’s downfall has caused chaotic scenes with hundreds of cabbies queuing outside broker offices and thousands of homeowners put at risk.
And now the Financial Services Compensation Fund (FSCS) has urged Alpha’s distributors and claims handlers to get in touch to help them sort out the mess.
Alpha could have a vast array of customers across PI, SME, motor, GAP and home.
Help by insurance firms could allow the FSCS to determine whether it or the Danish compensation fund will mop up UK claims payments.
Both countries may eventually have to help beleaguered customers of the Danish insurer.
”To help us prepare our response to the failure of Alpha Insurance we are asking managing general agents and claims handling firms to contact us at brokers.alpha@fscs.org.uk to discuss how we might work together to assist Alpha Insurance policyholders.
“We are sorry but we can only respond to brokers who were managing general agents and claims handling firms via this address,” the FSCS said.
”We are aware that Alpha Insurance appear to have provided a range of insurances to the UK retail and commercial market, such as professional indemnity, motor and gap insurance, and home insurance.
“We are investigating the status of that insurance and whether and to what extent Alpha Insurance policyholders are protected by the Danish Fund and/or FSCS. We will provide a further update shortly.”
So far, customers of telematics broker Carrot have been rescued by Aviva.
Alpha went bust because it was connected to a web of unrated and weakly-capitalised insurers.
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