The Financial Services Compensation Scheme (FSCS) has today declared the Gibraltar based insurer Enterprise Insurance Company Plc in default paving the way for the FSCS to protect the interests of UK policyholders in the event of the insurer being unable to meet its financial obligations under policies.
The statement from the FSCS provides more information regarding their approach and the levels of compensation that are available to policyholders of the failed insurer.
This action by the FSCS follows Friday’s announcement by the Gibraltar Financial Services Commission (FSC) that it had intervened in the operation of Enterprise and was taking steps to issue winding up proceedings and on Monday a provisional liquidator was appointed to manage the company’s affairs. More information is available from the FSC website.
What does this mean for UK policyholders?
Whilst policies remain in force as of 28 July 2016 it is clear that if policyholders wish to ensure that they are fully protected moving forwards they should seek alternative insurance with another provider. Whilst premium refunds for unexpired periods of cover may be available at some point in the future it should be borne in mind that if you cancel your current policy with Enterprise it may be subject to short period cancellation rates and there is no guarantee of when any refund will be provided.
If you require any further assistance with this matter or would like to seek alternative quotations for cover to replace your Enterprise policy please feel free to call us directly on 0161 300 2930.