The Financial Conduct Authority (FCA) announced that the UK insurance firm MCE Insurance has gone into administration.
It’s a brand-new and still unfolding narrative, but the FCA has announced that MCE, a well-known motorbike insurance provider in the United Kingdom, is going bankrupt.
On November 19th, 2021, MCE Insurance Company applied for administration to the Supreme Court of Gibraltar, where they are licensed and regulated by the Gibraltar Financial Services Commission (GFSC) to operate in the United Kingdom.
There are two ‘MCE’ companies on this list: ‘MCE Insurance Ltd,’ which is the UK-based broker that creates insurance policies on a ‘freedom of service basis,’ and ‘MCE Insurance Company Limited,’ which is the Gibraltar-based insurance company that underwrites them.
The FCA says that the firm closed its new business policies on November 5, 2021, with most of the business’ client base being motorcycles and automobiles.
MCE Insurance enters administration
MCE Insurance’s website states that the new law did not apply to existing insurance policies. If you have already taken out an MCE policy with your current broker in the United Kingdom, your coverage will continue unaffected by this reform. It’s also worth noting that existing insurance agreements issued by MCE UK will remain in force and be valid under the FCA
The administrators of the company were Andrew Stoneman and Geoff Bouchier from Gibraltar’s Kroll.
It appears that all MCE customers will get an email with more information, so if you’re a policyholder, check your inbox.
What MCE’s administration means for policies and claims
Here’s what it means for policies taken out prior to 9 November 2021:
Have you obtained an MCE Insurance Company policy? You will remain covered until the end of your coverage.
Make a request to the MCE brokering side of the business if you need to claim before the end of your policy. If you need to change anything or access your files, send this request by email (email@example.com) or call 0193 335 1361 to the brokering side of the business.
MCE UK will cancel your policy and return any premiums you have paid, as provided for in the terms of the policy. In some situations, however, MCE UK may be able to sell or arrange a new policy for you with a new insurer at the conclusion of your contract. You can still renew if you wish; your insurance will be supplied
Do you have an existing MCE Insurance Company claim? This will now be compensated through the Financial Compensation Services Scheme (FSCS).
There are no immediate actions you need to take. Because current claims will be passed onto the FSCS – the financial services compensation fund of last resort for consumers of authorized financial services firms – you don’t have to do anything here. They will contact you. If your claim is valid, the FSCS will payout.
For compulsory insurance claims, such as third-party motor claims, you’ll get 100% compensation. For other types of claims, you’ll get 90%. You can find more information on FSCS protection rules and limits on its website.
If your policy was taken out on or after 9 November 2021:
Underwriting is not done by the MCE insurance arm when any new policies are acquired through its brokering arm.
If an insurance arm goes bankrupt, you won’t be affected since it isn’t your own. This implies you’ll keep receiving coverage. In this situation, you may make any policy modifications or claims by contacting Sabre. All you have to do is fill out a claim form with Sabre and provide them with the necessary documentation