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.
See our insurance compensation limits and their conditions on our Insurance page.
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24 May, 2023
We are now aware that a small number of customers are owed an additional return of premium amount. In most cases the amount due back is less than £50, but if you believe this applies to you, please email InsDefaultQueries@fscs.org.uk.
A few other customers due £50 or more will have received an email explaining the process and are starting to receive payments.
We're asking for ID and proof of bank account details to ensure we pay compensation to the correct person. -
15 Nov, 2019
We are aware that many Alpha latent defect policyholders have still not received a premium refund from FSCS. We're appealing for these policyholders to submit their premium refund claim to the Alpha claims portal.
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12 Sep, 2019
CRL Management Ltd ("CRL") was an appointed representative of BCR Legal Group Ltd (“BCR”) who operated under authority from Alpha to sell Latent/Structural Defect insurance policy cover in the UK.
FSCS has been recently made aware that CRL has stopped writing new business. All calls and enquires to CRL relating to Alpha are being redirected to BCR for handling.
BCR has assured FSCS that those calls and enquiries are being dealt with as normal. If you have any questions about this, please contact BCR at: mailroom@bcr.co.uk or 020 8343 3242.
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11 Sep, 2019
If you are an Alpha Insurance Latent Defect policyholder and believe you are due a premium refund, but haven’t received any communication from FSCS, you need to submit your claim directly via the Alpha portal at https://administration.topdanmark.dk/alpha-insurance/return-of-premium/ to proceed.
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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 about this on the Q&A 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/.
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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.
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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.
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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.
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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).
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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 has been provided with a policyholder’s full name and address, cheque payments will start being posted out immediately.
Where FSCS has 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://administration.topdanmark.dk/alpha-insurance/return-of-premium/
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/.
To read a list of commonly asked questions around the return of premiums, click the Q&A tab above.
Pen Underwriting
Alpha solicitor’s professional indemnity claims
Commonly asked questions
On the discovery of any circumstances that may possibly give rise to or lead to a potential claim, the policyholder should give written notice to: Claims Department, BCR Legal Group Ltd, 25 Dollis Park, London N3 1HJ and then call them on 020 8343 3242 to follow up.
Where the claim relates to the initial two-year period, the builder/developer will be responsible for all remedial works in accordance with CRL’s membership requirements. A dispute resolution service is offered under the policy between the policyholder and the developer.
If the dispute procedure is not successful, the claim will be dealt with under the CRL policy which will, in turn, be picked up by FSCS (provided the claim is accepted as valid by the Alpha liquidator). The policyholder needs to make sure they have done this to protect their position; this is all covered in more detail in the CRL policy documents, which they should have a copy of.
Alpha Insurance provided a range of insurance policies to the UK retail and commercial market. Policy types included solicitors’ professional indemnity insurance, motor insurance gap insurance and latent defects insurance (insuring customers from defects in new build homes).
If a UK customer isn’t covered by the Danish Guarantee Fund it is possible they can still benefit from FSCS protection if they are a business with an annual turnover of less than £1m.
We know this will include:
Commercial policyholders who need to claim for damage to their own vehicle
Solicitors with professional indemnity cover
All Alpha Insurance policies terminated on 11th August 2018.
Non-commercial motor policyholders
If you are a non-commercial motor policyholder your premium refund claim will be covered by the Danish Guarantee Fund and you will get a refund for the unexpired period of your insurance cover subject to a deductible of 1,000 DKK. You may be entitled to a top-up payment from FSCS if, after the application of the 1,000 DKK deductible, you have not received 90% of the unexpired premium amount owed to you. FSCS will work with the Danish Guarantee Fund to ensure the premium refund owed to you is calculated correctly.
To make a return of premium claim you will need to complete an online form on Alpha Insurance’s website here.
Commercial motor policyholders (i.e. Taxi drivers)
For eligible commercial policyholders in the UK, you will get a refund for the unexpired period of your insurance cover. FSCS will cover 90% of your premium refund claim.
To make a return of premium claim you will need to complete an online form on Alpha Insurance’s website here.
Replacement insurance
If your broker has been able to replace all of their customers’ Alpha policies to a new insurance provider, FSCS will pay the broker the return of premium compensation where we have reached an agreement with them. Your broker will then pass this return of premium on to your new insurance provider. Your broker/new insurer will tell you if they’ve replaced your policy and you will be able to cancel any replacement cover during the “cooling off period” should you want to.
Premium Finance
FSCS will pay finance companies where customers have bought the cover using a loan that required them to assign their rights to the finance company. We’ve been working with the two main providers: Close Brothers and Premium Credit, to finalise the terms of how we can arrange the payment. If you bought your cover using credit from either of these companies, we will pay the compensation directly to them and it will go towards paying back the loan.
FSCS worked with Premia Solutions to replace 177,000 Guaranteed Asset Protection (GAP) policies with effect from 12 August 2018. The new insurer will be a Lloyd’s of London syndicate.
Affected policy holders will receive a letter from Premia Solutions outlining the details of the transfer of their policies. The transfer comes after Alpha’s liquidator gave notice that these policies will be cancelled on 11 August 2018.
If you have not yet received a letter from Premia Solutions, you can contact:
Premia Solutions’ customer hotline for Alpha GAP insurance on 03333 010 750 or visit www.premiasolutions.com.
Updated 12 August 2019
FSCS is working closely with both CRL Management Ltd and the Alpha Liquidator to ensure that eligible policyholders either receive a premium refund or benefit from a replacement policy arranged by their broker.
FSCS can pay premium refund compensation if a post-completion certificate of insurance was issued by CRL Management Ltd, for the property in question, before 11 August 2018.
Please be aware that Developers cannot claim return of premium compensation from FSCS because until the relevant property is sold, there is no valid contract of insurance for regulatory purposes, and the premium was not paid by a policyholder. Developers may be able to make an unsecured claim in Alpha’s insolvency and will need to complete an online form on Alpha Insurance's website.
If you paid for your insurance using a credit card, in certain circumstances the credit card company will reimburse you for the product you have purchased. You should contact your credit card company to find out how they can help you.
You should tell us if you successfully claim from your credit card company as this money would be deducted from any claim you make to FSCS. You may be breaking the law if you attempt to claim the same loss back from both FSCS and your credit card company.
Where FSCS pays you a return of premium claim we would inform your credit card company if they ask us.
FSCS can compensate for claims against 'European Economic Area' insurers that are authorised in the UK, but only for UK business.