FSCS steps in to protect over 16,000 policyholders of failed insurer Premier Insurance Company Limited
Gibraltar-based insurer Premier Insurance Company Limited has stopped trading and was declared in default by the Financial Services Compensation Scheme (FSCS) on 14 October 2025. As a result, the insurer is no longer paying claims in full and FSCS is stepping in to protect the firm’s eligible UK policyholders. It is expected that over 16,000 individual customers and small firms with an annual turnover of less than £1m will be protected by FSCS.
This failure relates specifically to Premier Insurance Company Limited which is a motor insurer based in Gibraltar and not to the UK broker of a similar name or other UK-based firms with similar names.
Premier Insurance Company Limited provided a range of car, van and motorbike insurance products to individuals and small businesses across the UK. FSCS is working closely with the Insolvency Practitioner, Grant Thornton (Gibraltar), and financial regulators in the UK, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), as well as the regulator in Gibraltar, the Gibraltar Financial Services Commission (GFSC), to understand the impact of the insurer’s failure.
Sarah Marin, Chief Customer Officer at FSCS, said:
“We understand customers will be worried about how Premier Insurance Company Limited’s failure will affect their motor insurance policies. We’d like to reassure customers that FSCS is working closely with the Insolvency Practitioner, Grant Thornton (Gibraltar) to make sure all eligible UK policyholders are protected.
“FSCS will also protect eligible firms with an annual turnover of less than £1m. Premier Insurance Company Limited customers can be assured that their claims will continue to be considered against the terms of their policy.”
FSCS has been working closely with the regulators and other related partners to monitor the situation and make sure the impact on customers and industry levy payers is reduced. FSCS will continue to monitor developments and will provide updates on its website as things progress.
Customers who are unclear if their insurance policy was underwritten by Premier Insurance Company Limited should contact the insurance broker that sold the policy to them. A dedicated page is available on the FSCS website with helpful questions and answers for policyholders.
Further information about how FSCS protects insurance customers is also available online at www.fscs.org.uk/what-we-cover/insurance.
When an insurance company fails, customers do not need to submit a claim directly to FSCS. The Insolvency Practitioners will help affected customers directly and will contact them if needed.
Media enquiries
Richard Freeston-Clough
E: publicrelations@fscs.org.uk
T: 07825 745787