FSCS hails Enterprise replacement cover as ‘good news’ for policyholders
Warranty broker Motorway Direct has named AmTrust International Underwriters DAC as the replacement insurer for 200,000 cancelled policies that were previously written by failed Gibraltar insurer Enterprise.
Enterprise’s liquidator cancelled the 200,000 Enterprise-underwritten Motorway Direct policies on Thursday alongside 6,000 sold by fellow broker NCI Roadside Assistance. An Enterprise replacement for the NCI policies has also been found, although neither the FSCS nor NCI have said who the replacement insurer is.
Motorway Direct said the new policies underwritten by AmTrust International Underwriters will be issued automatically with “no changes to changes to the policy terms and conditions and the service provided will be exactly the same”.
The FSCS said that the total 206,000 policies that were cancelled yesterday included guaranteed asset protection, motor warranty and household electronic good warranties. It said the two brokers would advise their customers of the policy transfers “in the coming days”.
FSCS chief executive Mark Neale said: “This is good news for many thousands of Enterprise customers. They no longer need to worry that they do not have insurance in place. And we’re 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 consumers.”
Enterprise collapsed in July. The liquidator is Freddie White from accounting firm Grant Thonrton. Enterprise had 760,000 live policies when White was appointed provisional liquidator in July, sold through 54 brokers.