Cover ended on 8 May 2018.

Danish-based unrated Alpha Insurance has been declared bankrupt after a filing by the liquidators.

The Danish Financial Supervisory Authority has urged all policyholders to seek new policies as all existing cover has been terminated.

Claims already filed may be met by the Danish Guarantee Fund in certain categories and new claims can be “incurred” until 5 June but must be lodged by 8 November 2018.

Outside of the select categories and dates future claims will need to be made to the bankruptcy estate of Alpha Insurance.

Collapse
The collapse of Alpha, whose specialisms included motor fleet, began at the start of March when the Danish FSA ordered it to develop a recovery plan.

Following an inspection the regulator believed the insurer’s counterparties were unlikely to meet their obligations to the tune of £4.37m.

Just days later the troubles at CBL Insurance in New Zealand, one of Alpha’s largest reinsurers, led to the Alpha board of directors to stop writing new business and renewals as of 3 March.

The following day Alpha was placed into solvent liquidation and run-off with the company stating that it expected “that all present and future obligations will be honoured” and that “claims will be paid and all policies in force will remain so until their contractual expiry”.

FSCS
Commenting on the latest development the Financial Services Compensation Scheme (FSCS) said it was “aware” of the situation and urged policyholders to read the statement on the Danish FSA website.

The FSCS added: “We are considering the position with the authorities and will provide further updates shortly.”

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