Exclusive: UK policyholders for Alpha Insurance have been left in limbo following the company being declared bankrupt.
The Danish insurer has been forced to terminate all policies after a liquidator found the company insolvent.
The firm had motor fleet policies in the UK via Cardiff-based managing general agent Lima Agency.
The insurer is also believed to have provided capacity for Thistle Underwriting, although the company could not be immediately contacted for comment.
An underwriter at Lima, who declined to be named, said: “We are currently in the process of contacting all policyholders. We can’t offer any further comment at this time.”
The company used Alpha as its sole carrier for its fleet policies in the UK, although it is not known how many policies are affected.
The Danish Guarantee Fund, the FSCS equivalent, has urged all Danish policyholders to seek replacement cover.
A statement said: “Policyholders must report their claims to the Danish Guarantee Fund for non-life insurance undertakings, provided that the claims are covered by the Guarantee Fund.
“Otherwise, policyholders must report their claims to the bankruptcy estate of Alpha Insurance A/S.”
The Financial Services Compensation Scheme has declined to comment on whether UK policyholders would be compensated.
A statement said: “We are considering the position with the authorities and will provide further updates shortly.”
The FSCS previously covered 60,000 UK policyholders affected by the collapse of Gable. It paid out last year £16.5m in claims from Gable policies, and refunded premiums worth £10.2m.
Alpha placed itself into solvent liquidation in March as a “direct consequence” of the failure of CBL Insurance.
Zurich disappointed in new #discountrate. David Nichols, Ch Claims Officer: "The failure to change the discount rate to a balanced level will only serve to increase the cost and, therefore, affordability of certain types of insurance - especially for higher risk customers." pic.twitter.com/ac1CfBzfxX— Zurich Insurance UK (@ZurichInsUK) July 15, 2019
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