Alpha Insurance A/S

Failed 08 May 2018

FRN: 431621

Alpha Insurance A/S (Alpha Insurance), a Danish insurance company, was declared bankrupt on 8 May 2018. FSCS has been working closely with Alpha’s liquidator, the Danish Guarantee Fund and the Danish Financial Supervisory Authority (Danish FSA) to understand the impact of Alpha’s bankruptcy.

Click the 'Latest updates' tab below for the most recent news on this firm.

Alpha Insurance website

  • 19 Aug, 2019

    FSCS will compensate Alpha Insurance latent defect premium insurance policyholders.

    This follows the collapse of the deal arranged by BCR Legal Group Ltd to provide replacement cover for Alpha’s 10-year latent defect/structural damage insurance policies due to a number of last-minute issues.

    As a result, policyholders cannot be expected to wait any longer and FSCS is to pay premium refund compensation to around 14,000 policyholders directly and cheques will be posted in the coming weeks. FSCS is also writing to the remaining 6,500 policyholders with instructions on what steps the policyholders must take to submit their claim. There is no need for any Alpha customers to contact FSCS, as all relevant policyholders can be assured that FSCS will seek to contact them within the next two weeks. You can find more information on this process in an FAQ on the 'Information' tab.

    We recognise that a refund of premium may not be the outcome Alpha customers would have chosen and we deeply regret that it wasn’t possible to find replacement cover. Please be assured that FSCS and other parties exhausted every possible avenue to try to replace the cover, which is why this process has taken so long.

    Once the premium insurance refund has been paid, FSCS recommends that policyholders seek professional advice on obtaining replacement cover as soon as possible by contacting a suitable insurance broker who specialises in latent defect/structural damage policies.

    Policyholders may be in breach of their mortgage terms and conditions if they do not have a valid latent defect policy for their property. Should policyholders not know of a suitable insurance broker to help with replacement cover, they can get help via the British Insurance Brokers’ Association’s ‘Find-A-Broker’ service by telephoning 0370 950 1790, email fab@biba.org.uk.

    If you have a post-completion certificate of insurance and have not received a cheque from FSCS by 15 September you will need to submit your claim for return of premium via the Alpha portal: https://alphagroup.dk/submit-a-claim/.

  • 01 Aug, 2019

    The deal to secure replacement cover for Alpha Insurance’s latent defect policyholders remains agreed in principle and subject to contract. We’ve been working closely with BCR (the main Broker) and the Alpha Liquidator to try to resolve some very complex issues so we can secure replacement cover for Alpha’s 10-year latent defect/structural damage insurance policies.

    BCR Legal Group Ltd had previously indicated that its replacement insurer was in a position to proceed. However, they have now advised us that the replacement insurer has raised several last-minute issues that are preventing the agreement from being finalised. 

    We’re not sure at this stage if the replacement agreement will be able to proceed, but we are continuing to do everything in our power to make it happen as we know how important this is to everyone affected and we believe that this is the best outcome for customers.

    If your property has sustained damage caused by a latent defect you should raise a claim by notifying BCR and the developer, as set out in your policy documentation.

  • 24 Jul, 2019

    FSCS is looking forward to concluding the process of securing replacement cover for Alpha latent defect policies. This transfer remains agreed in principle and subject to contract. We have received no objections or last-minute requests for changes and are simply awaiting the signatures of the parties concerned.

    FSCS is pressing for this to be concluded urgently, and we will provide a further update when we’ve more news.

     

  • 19 Jul, 2019

    FSCS is able to confirm that a deal to secure replacement cover for Alpha Insurance’s Latent Defect policyholders has now been agreed (subject to contract) with a new, solvent insurer.

    All parties involved in the arrangement intend to provide final sign-off on Wednesday 24 July.

    FSCS will continue to provide updates on the closing stages of this process over the coming days.

     

  • 12 Jul, 2019

    Since May 2018, FSCS has been working with CRL Management (an appointed representative of BCR Legal Group Ltd), BCR Legal Group Ltd and the Alpha Liquidator to try and secure replacement cover for Alpha’s 10-year latent defect/structural damage insurance policies, which lapsed on 11 August 2018 in accordance with Danish law.

    We appreciate the difficult position that many CRL Management/Alpha Insurance customers currently find themselves in, in light of the continued uncertainty surrounding replacement cover being secured.

    By far the best outcome here is for BCR/CRL to be successful in arranging replacement cover with a new, solvent insurer.

    FSCS is aware that, should a new insurer not be found, it will be difficult for affected policyholders to find replacement cover themselves. Furthermore, the cost of that replacement cover is likely to exceed the amount the policyholders receive in premium refund compensation from FSCS.

    For this reason we have granted BCR/CRL a number of deadline extensions in the hope that a new insurance provider can be found.

    BCR/CRL have assured FSCS that good progress has been made in recent days and it is likely a deal to secure replacement cover with a new, solvent insurer will be finalised shortly. We will provide a further update by the end of next week (Friday 19 July).

     

  • 08 Jul, 2019

    Although we’d hoped to make a more comprehensive announcement today, work to finalise the agreement for the latent defect policy transfer to the new insurer is still ongoing, although extremely close to a conclusion. We’ll provide a further update later this week.

     

  • 02 Jul, 2019

    FSCS, CRL and BCR are continuing to work on a successful transfer of Alpha’s latent defect policies to a new insurer, and good progress has been made in recent days. Discussions with the new insurer are at an advanced stage, however, the timetable has been pushed back slightly while the terms of the transfer are reviewed. We’ll provide a further update on Monday, 8 July.

     

  • 10 Jun, 2019

    Following our update on 23 May, CRL Management has recently identified a new alternative insurer to FSCS. CRL has also provided FSCS with a comprehensive timetable outlining key steps and milestones that will ensure a successful transfer of Alpha’s latent defect policies to that new insurer by 2 July. If the stated milestones are not met as scheduled, the 2 July extension will be cancelled and FSCS will proceed to pay premium refund compensation directly to affected policyholders.

     

  • 28 May, 2019

    FSCS is in the process of issuing premium refund payments totalling £6.9m to 9,000 commercial taxi policyholders insured by Alpha Insurance and sold through the Alpha MGA broker, Capital Underwriting Agency Ltd (CUAL).

    If you were an Alpha commercial taxi policyholder and haven't received a cheque payment, please contact your broker to check if you're entitled to a refund. If so, please ask your broker to contact FSCS with your details.

    If you've received a cheque but you think the amount is incorrect, you'll need to contact the broker from whom you purchased your Alpha policy. These premium refund payments have been based on information provided by Alpha’s brokers and verified by the Alpha liquidator. Any issues concerning the premium refund payment you've received will need to be raised with your broker in the first instance.

    We've put together a Q&A that should answer most of your questions here (pdf download).

     

  • 23 May, 2019

    The deadline has passed and we're reviewing the latest submission from BCR regarding their progress with securing a new insurer. We’ll provide a fuller update towards the end of next week.

     

  • 30 Apr, 2019

    The Financial Services Compensation Scheme (FSCS) has further extended the deadline for CRL Management to find an alternative insurer to provide replacement cover for Alpha latent defect and structural damage insurance policyholders whose policies terminated last August.

    FSCS has given CRL Management (an appointed representative of BCR Legal Group) until 22 May to secure alternative cover with a suitable insurer. FSCS together with our colleagues at the FCA and PRA hope that a further deadline extension will allow CRL to provide all the information that is required for a suitable alternative insurer to commit to a deal.

     

  • 15 Apr, 2019

    The Financial Services Compensation Scheme (FSCS) has further extended the deadline for CRL Management to find an alternative insurer to provide replacement cover for Alpha latent defect and structural damage insurance policyholders whose policies terminated last August.

    FSCS has given CRL Management (an appointed representative of BCR Legal Group) until 30 April to secure alternative cover, following the granting of a two-week extension on 29 March 2019. CRL Management continues to make good progress in arranging such cover, and FSCS is hopeful that the further deadline extension could lead to a deal being agreed that would provide the best-possible outcome for these policyholders.

    FSCS continues to work closely with CRL Management and the Alpha liquidator.

     

  • 01 Apr, 2019

    The Financial Services Compensation Scheme (FSCS) has given CRL Management a further two weeks to find an alternative insurer to provide replacement cover for Alpha latent defect and structural damage insurance policyholders whose policies terminated last August.

    FSCS had previously given CRL Management (an appointed representative of BCR Legal Group) until 29 March 2019 to secure alternative cover. CRL Management has shown that it is making progress in arranging such cover, and FSCS is hopeful that an extension of the deadline could lead to a deal being agreed that would provide the best-possible outcome for these policyholders.

    FSCS will continue to work closely with CRL Management and the Alpha Liquidator, and will provide a further update on the position in two weeks.

  • 07 Mar, 2019

    FSCS is still working with CRL Management towards finding a new provider for Alpha latent defect/structural damage policies that terminated on 11 August 2018. A challenging marketplace and poor-quality policy holder data are complicating this process. CRL Management had previously identified a possible replacement provider. It is now unlikely that this insurer will take on the policies. If no new provider can be found by 29 March 2019, FSCS will start to build a process to return the unused part of the premium to policy holders.

  • 30 Jan, 2019

    Following our update on 21 November, CRL Management has recently identified a potential replacement insurer. FSCS is continuing to work with CRL Management, the Alpha Liquidator and the Danish Guarantee Fund to secure replacement cover for Alpha latent defect/structural damage insurance policies that terminated on 11 August 2018.

     

  • 21 Nov, 2018

    FSCS is working with CRL Management, the Alpha Liquidator and the Danish Guarantee Fund to replace cover for Alpha policies that terminated on 11 August 2018 because of the Alpha bankruptcy. We may be able to pay compensation to secure replacement cover for policies in relation to properties located in the United Kingdom where a post-completion certificate was issued by 11 August 2018. The replacement cover will be backdated and begin from when the Alpha policies terminated.

    We are unable to compensate or provide replacement cover for Alpha policies taken out by developers, where protection was not activated by a homeowner purchasing the property before 11 August 2018.

    Policies in relation to foreign properties will not be included under our rules. FSCS can’t provide compensation for risks insured by Alpha that are located outside of the UK.

     

  • 20 Nov, 2018

    The Alpha Liquidator has recently sent out letters to all UK customers of Alpha insurance who submitted a premium refund claim via the Alpha online portal before 11 September. These letters acknowledge that the Alpha Liquidator has received their details and is working on verifying their premium refund claim.

    The letters also offer advice on whether customers might be eligible for protection from FSCS and the Danish Guarantee Fund (DGF). Please note that if customers aren’t eligible for protection from DGF, they may still be eligible for protection from us.

    Customers do not need to do anything further at this stage. Their details will be passed to FSCS and the DGF by the Alpha Liquidator when they have finished verifying their premium refund claim.

    The Alpha Liquidator is currently reviewing premium refund claims submitted after 11 September and will be in contact with those policyholders shortly.

     

  • 25 Oct, 2018

    Please note that customers must notify Alpha of any claim by 8 November, 2018 for these to be covered by the Danish Guarantee Feed (“DGF”). Any UK customers with Alpha claims after this date, could still benefit from FSCS protection if they’re a private individual or a business with an annual turnover of less than £1m.

    For further information please visit the Danish Guarantee Fund’s information on the Alpha site.

     

     

  • Return of premium

    Where FSCS have been provided with a policyholder’s full name and address, cheque payments will start being posted out immediately.

    Where FSCS have not been provided with a property owner’s full name, a letter will be sent out to the address provided to FSCS by BCR/CRL providing instructions on what steps to take next, and what documents are needed, including submitting their details via the Alpha portal: https://alphagroup.dk/submit-a-claim/.

    If you are in possession of a post completion certificate of insurance and have not received either a cheque or a letter from FSCS by 15 September, you will need to submit your claim for RoP via the Alpha portal: https://alphagroup.dk/submit-a-claim/ .,


    Commonly asked questions

    Broadspire & Crawford UK

    Alpha motor claim queries

    processing@broadspiretpa.co.uk

    Pen Underwriting

    Alpha solicitor’s professional indemnity claims

    matt_driscoll@penunderwriting.com

    CRL Management

    Alpha structural damage / latent defect insurance

    policyupdates@bcr.co.uk

    0208 343 3242