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£6.9m payout to 9,000 policyholders after insurance collapse
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Author:  StuartW [ Thu May 30, 2019 5:58 pm ]
Post subject:  £6.9m payout to 9,000 policyholders after insurance collapse

FSCS to pay out £6.9m to taxi drivers affected by Alpha collapse ... a-collapse

Organisation to refund 9,000 commercial taxi drivers who were insured by Alpha via its broker MGA Capital Underwriting Agency.

The Financial Services Compensation Scheme (FSCS) has revealed it is in the process of paying out a total of £6.9m to Alpha customers following the unrated Danish insurer’s collapse.

The payments are being issued to 9,000 commercial taxi policyholders who were insured by Alpha via UK brokers through its managing general agent, Capital Underwriting Agency.

The FSCS has previously transferred 177,000 GAP policies formerly with Alpha, after working with the Danish Guarantee Fund and Premia Solutions to secure alternative cover.

Alpha was declared bankrupt in May 2018 and policies expired on 11 August 2018.

The collapse of the provider specifically hit the taxi insurance market and also reopened the debate around whether brokers should be dealing with unrated insurers.

In the weeks following the bankruptcy, Markerstudy stepped in to support Right Choice Insurance Brokers with a £6m GWP portfolio and Aviva supported telematics specialist Carrot.

The FSCS recently extended the deadline for broker CRL Management to find an alternative insurer to provide replacement cover for Alpha policies.

CRL’s chief executive officer Steve Mansour told Insurance Age that the broker had been working with the FSCS for some months in order to help transferring policies affected by Alpha’s bankruptcy.

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