Important Member Update – Alpha Insurance A/S declared bankrupt
9th May 2018
The Danish FSA has informed the Financial Conduct Authority that Alpha Insurance A/S has been declared bankrupt and that cover on existing policies is cancelled with immediate effect from 8 May 2018.
Members that are using an MGA that has taken capacity from Alpha should contact the MGA to find out about their arrangements for replacing the capacity provider and on the continuing validity of existing contracts.
Brokers that have placed business with Alpha directly will urgently need to seek suitable alternative cover, particularly for compulsory classes of business such as motor insurance, for affected clients.
The bankruptcy means that policyholders can no longer report their claims to Alpha Insurance A/S. Policyholders must report their claims to the Danish Guarantee Fund for non-life insurance undertakings, provided that the claim is covered by the Guarantee Fund. Otherwise, policyholders must report their claims to the bankrupt estate of Alpha Insurance A/S.
The Danish guarantee fund should accept claims under personal lines policies held with Alpha, four weeks after 8 May 2018.
More information (including a Q&A) can be found at: https://finanstilsynet.dk/en/Nyheder-og-Presse/Pressemeddelelser/2018/Alpha-insurance-080518