Alpha Insurance A/S

This page is for Customers of Alpha Insurance A/S an insurance company that was declared in default on 8 May 2018. Customers of Alpha Insurance are reminded that their policies expired on 11 August 2018.

We will continue to update this page with the latest developments. You can also get notification of the latest updates by following FSCS on Twitter and Facebook.

 

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 April 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 April 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.

 

1 April 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.

7 March 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.

A further update will be provided on 1 April.

 

30 January 2019

Following our update on 21 November, CRL Management have 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 November 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 November 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 October 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 page.

Find out more about our insurance compensation claim eligibility rules.

 

About Alpha Insurance A/S

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.

What types of insurance cover did Alpha Insurance provide in the UK? 

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).

How is FSCS helping UK customers of Alpha Insurance?

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

How are UK customers of Alpha Insurance protected for premium refunds on their motor policies?

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. 

How are UK customers of Alpha Insurance protected for premium refunds on their GAP replacement policies?

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.

How are UK customers of Alpha Insurance protected for premium refunds on their latent defect / structural damage policies?

Updated 17 April 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.

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.

Please keep checking this page for updates on this.

How can customers claim back the cost of their premium from their credit card provider?

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.

What if you need to make a claim, or check the status of an existing claim, on your Alpha policy?

For Alpha motor claim queries contact Broadspire & Crawford UK:

For queries relating to Alpha solicitor’s professional indemnity claims contact Pen Underwriting:

For any Alpha structural damage / latent defect insurance claim queries contact CRL Management:

Find out the latest news on Alpha Insurance claims handling on their website.

How does FSCS insurance protection work?

FSCS can compensate for claims against 'European Economic Area' insurers that are authorised in the UK, but only for UK business. 

Find out more about our insurance compensation claim eligibility rules

What other products does FSCS protect?

FSCS protects a range of financial products including, deposits (current & savings accounts), investments, pensions, endowments, PPI, debt management and home finance. Find out more about the products FSCS covers.