More than 30,000 policyholders of Enterprise Insurance have received reimbursement from the Financial Services Compensation Scheme (FSCS) following the insurer’s collapse last year.
In its latest update, the FSCS said it has paid Enterprise customers with over £26 million in compensation, including £17.6 million for motor policy claims, £1 million on non-motor policy claims and £7.8 million for return of premium claims.
The compensation body has been paying claims either directly to policyholders or through their broker or finance company.
The FSCS said it is working closely with Enterprise’s liquidator, brokers and finance firms to ensure that the remaining policyholders will be compensated “as soon as possible.”
“FSCS is here to protect consumers. We are continuing our work to ensure policyholders are not out-of-pocket,” said FSCS chief executive Mark Neale.
“For most policyholders this involves making return of premium payments via their broker, or finance company,” he added. “They in turn, are transferring their Enterprise business to an alternative insurer.”
Enterprise was declared insolvent in July 2016, affecting about 46,000 customers in the UK with motor insurance policies. Liquidator Freddie White of Grant Thornton cancelled the policies in late October.
In a report to Gibraltar’s Supreme Court, White said Enterprise committed several regulatory breaches before it collapsed.
According to the report, Enterprise has an estimated £151.5 million of liabilities to policyholders and an asset deficit of £94.4 million.
The report also valued the cost of motor loss claims at £143.8 million, including £83.9 million in the UK.
Over £2 million paid to Enterprise clients in UK
Enterprise Insurance committed regulatory breaches – liquidator