MCE Insurance Company Ltd has failed
The Financial Services Compensation Scheme (FSCS) on 19 November 2021, declared that the Gibraltar-based insurance company MCE Insurance Company Limited has failed. As a result, this insurer is no longer paying claims. FSCS is stepping in to protect most of the motor insurance policies that MCE Insurance Company Limited sold to individuals and small businesses in the UK.
The broker MCE Insurance Limited (MCE UK) based in Northamptonshire provides various administration services including claims management, to the Company under a Service Agreement. MCE UK is not part of the Administration process.
FSCS is working closely with the appointed Joint Administrators, Andrew Stoneman and Geoff Bouchier of Kroll (Gibraltar), and the Gibraltar Financial Service Commission to understand the impact of the insurance firm’s failure.
MCE Insurance Company Limited provided a range of private motorbike, car, van, courier and fast-food delivery insurance products in the UK which were sold through a broker called MCE Insurance Ltd. If you are unclear about whether your insurance policy was underwritten by MCE Insurance Company Limited, contact the insurance broker who sold you the policy and they will be able to help.
Any new policies taken out from MCE Insurance Ltd the broker since 05 November 2021 have been underwritten by a different provider and are unaffected by the failure of MCE Insurance Company Limited.
Sarah Marin, Chief Customer Officer at FSCS, said:
“We are in the process of identifying how many UK customers are affected by the failure of MCE Insurance Company Limited. We are working closely with the Administrators to make sure that all eligible policyholders are protected.
“FSCS will protect the majority of UK-based customers of MCE Insurance Company Limited who are individuals or small businesses with an annual turnover of less than £1m. We want to reassure MCE Insurance Company Limited customers that their claims will continue to be considered against the terms of their policy and that FSCS will be stepping in to protect eligible customers.”
Policyholders should check the FSCS website for updates at https://www.fscs.org.uk/making-a-claim/failed-firms/mce-insurance
You can find out more about FSCS’s protection for insurance customers at https://www.fscs.org.uk/what-we-cover/insurance/