Hi there 
 
Please see below for a press release highlighting the consequences for people with motor insurance if their insurance company goes bankrupt. It also contains some useful information about how to avoid getting into this situation. 

I hope you will be able to use this information and please do let me know if you need anything further or any accompanying images.

Kind Regards

Jenny 

Jenny Viner

HoldsworthPR

Public Relations and Marketing
The Old Nursery Office, Rock Road, Washington, West Sussex, RH20 3BH
Tel:  01903 892060 or 07917 886851
Fax:  01903 891637
Email:  jenny@holdsworthpr.co.uk

Website: www.rachaelholdsworth.co.uk 

PRESS RELEASE

21^st September 2016

Motor Insurance could you be caught short?

If you buy Motor Insurance – READ ON

In the wake of the recently bankrupt Gibraltar based insurance company, Enterprise, the CEO of SEIB Insurance Brokers, Barry Fehler, has highlighted the implications of such bankruptcies for the British general public.

Barry said: “Many British motorists have their car insurance placed with companies that are based abroad and passport into the UK. Whilst this is perfectly legal and such drivers will have valid insurance, there are often no guarantees of the stability and long-term viability of such companies such as we have seen with Enterprise.”

Enterprise went into liquidation in July of this year. The company did not hold a credit rating and was the third such company to fail in the past few years.

Barry continued: “Companies that have no credit rating may be at a higher risk of insolvency than those that have a high rating with one of the big three credit rating agencies. If a customer goes directly to an insurance company through a comparison website, they will be made aware that the company is FCA regulated but they will not necessarily be told if the company has a credit rating, or what their financial stability is. By using a well-respected brokers who only insures through A or A plus companies, or undertakes due diligence on companies that do not carry a rating a customer can be assured that their cover is safe.”

Should an insurance company go into liquidation; policies will become invalid as the company will be unable to honour any present or future claim. The policy holder will then have to purchase another policy, thus paying twice for the insurance.

The affected person will then be in line to receive a refund of the remainder of the premium. If the company is unable to honour this then as a last resort the Financial Service Compensation Scheme (FSCS) should be able to help but this can be a long, drawn out process. 

If a policy holder’s insurance company collapses with outstanding claims then a customer can be left severely out of pocket.

There is no legal requirement for an insurance company to have a credit rating. In order to get a credit rating, the insurance company must invite a credit rating agency to provide one. Most leading insurance companies in the UK have a credit rating.

So what do you need to look for, firstly establish who the insurer is and their registered address. This would be found on the key facts document or wording. To be truly protected always use a broker, if the worst happens they will be responsible for seeking further cover and recovering any monies through the FSCS. 

SEIB Insurance Brokers constantly monitor the credit ratings of insurance companies and so are always well informed when it comes to placing business. SEIB only use A or A plus rated insurers.

SEIB Insurance Brokers provide their tailored service across the main insurance areas including home, motor and travel.

The company also specialises in niche cover including private hire, equestrian policies and funeral services.

Visit www.seib.co.uk for further information.

ENDS

For more press information, contact Jenny Viner, jenny@holdsworthpr.co.uk, or 01903 892060.

EDITORS NOTES:

• SEIB Insurance Brokers are established general brokers offering specialist insurance services tailored to meet the needs of specific markets.  They are noted for their specialist insurance products for industries as diverse as equestrian, rural taxis and funeral directors. 
• Barry Fehler started the South Essex Insurance Brokers company from his parent’s home 50 years ago in 1963 and was re-branded as SEIB Insurance Brokers in 2015 to reflect the company’s nationwide business. The company has continued to grow and expand since its inconspicuous start and is now in the top 75 brokers in the UK.   The success of the company is due to an in depth knowledge of the specialist markets within which it operates and a desire to offer the best possible client experience. Over the years SEIB have won every insurance industry award for customer service and their claims service and the company is still proud to be particularly customer focused and pleased to go that extra mile whenever required.
• Equestrian insurance is a key SEIB business and the company is delighted to provide cover for the British Horse Society, World Horse Welfare, British Showjumping, Redwings, Arab Horse Society and many more charities and organisations.