UK: - Financial Services Compensation Scheme
sees large increase in Claims as a result of
collapse of unrated Insurers
In the UK the Financial Services Compensation Scheme has disclosed that in the past year it has assisted over 370,000 customers who were negatively affected by a 14 times increase in the number of claims caused by the collapses of Insurers who did not have any or any satisfactory rating.
Included in the list of Insurers who went under were Alpha and Lamp.
To illustrate this figures the scheme reported that in 2017/2018 it transferred a total of 27,000 policies where as in 2018/2019 that figure increased to 371,000, a 14 times increase
Other Insurers had to step into the breach and provide cover for the Policy Holders affected who included London Cabbies who could not work as a result of the collapse of Alpha Insurance. After the collapse of Alpha the Scheme had to raise a Supplementary levy of £14m to cover the deficit which arose.
The Financial Services Compensation Scheme is taking steps to increase awareness among the public, trade organisations and brokers with regard to the protection it provides which would include companies having the FSCS logo on all communications which will provide some reassurance to the public.
If you require any further detail or advice, please contact John Reid in O’Rourke Reid
Dial: +353 1 240 1200
Email: jreid@orourkereid.com
This document is for information purposes only and does not purport to represent legal advice.
© O’Rourke Reid 2018