The Financial Services Compensation Scheme (FSCS) has secured coverage for UK policyholders who had guaranteed asset protection (GAP) cover with the now-collapsed Alpha Insurance.
GAP policyholders will receive a letter from Premia Solutions, the insurer that has been working with the FSCS since Alpha’s collapse in May to secure alternative insurance cover for eligible customers, outlining the details of the transfer of their policies.
The FSCS worked with Premia Solutions to replace 177,000 GAP policies with effect from 12 August. The new insurer will be a Lloyd’s of London syndicate.
The transfer comes after Alpha’s liquidator gave notice that its GAP policies would be cancelled on 11 August.
Danish insurance company Alpha filed for bankruptcy in May, leaving thousands of drivers in the UK without protection.
Jimmy Barber, chief operating officer at the FSCS, said: “This is good news for many thousands of Alpha customers as they do not need to worry about having alternative insurance in place. We are continuing to work with other brokers to secure continuity of cover for their customers where this is possible. This is the best result possible for customers.”
Over the last five years, the FSCS has protected more than one million policyholders and paid out more than £590 million for insurance-related failures.