The Financial Services Compensation Scheme (FSCS) has urged the clients of Gibraltar-based insurer Enterprise and their brokers to find new cover before all their policies are cancelled this month.
The insolvent insurer’s provisional liquidator, Freddie White of Grant Thornton, has written to insurance brokers to warn that all policies are expected to be invalidated on October 26.
Enterprise’s policies were sold almost exclusively through insurance brokers, the FSCS noted. It called on brokers to notify their clients and help them obtain alternative cover.
Clients who will fail to find new insurance before the deadline will not have cover and FSCS protection will also no longer apply, the financial body warned.
“We strongly urge all existing Enterprise motor insurance customers to find new cover as soon as possible. FSCS will continue to protect you until the deadline,” said FSCS chief executive Mark Neale.
“FSCS has already paid almost £7m in claims mostly on Enterprise motor policies. But we cannot pay for claims that happen after the cancellation,” Neale added.
Declared insolvent in July, Enterprise previously said that there had been a “significant deterioration” in the company’s financial position, with its shareholders unable to contribute additional capital.
The Gibraltar Financial Services Commission had ordered Enterprise to immediately stop writing new insurance business and prohibited the company from making any payments.
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