The Financial Services Compensation Scheme has signed off on a deal that will see 10,700 customers of failed Danish insurer Alpha have their policies moved to Markerstudy.
The FSCS worked with the Danish Guarantee Fund and broker Right Choice to secure the agreement.
FSCS chief operating officer Jimmy Barber said: “We are delighted that thousands of motorists are fully insured through a successful collaboration between FSCS, the Danish Guarantee Fund, the Alpha liquidator, brokers and insurers. The complexity of the circumstances of Alpha’s collapse was a new challenge for FSCS which we have been working hard to meet.”
Gary Humphreys, group underwriting director at Markerstudy, added: “We have a longstanding working relationship with Right Choice and were very happy to support them. They had all the data allowing us to act quickly, successfully completing the transfer with minimal disruption to customers.”
Unrated insurer Alpha plunged into liquidation in March. It blamed its collapse on the failure of New Zealand-based CBL, which it relied on for reinsurance.
Some customers were transferred to other insurance providers at the time, as was the case with Carrot customers whose policies were moved to Aviva, but many were left in limbo.
In June the FSCS secured new cover for 177,000 guaranteed asset protection policies with a Lloyd’s syndicate.
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