FCA issues statement as motor insurer enters administration

Gibraltar-based insurer Premier Insurance Company has entered administration, prompting warnings from regulators for UK policyholders to seek alternative cover.

Premier Insurance Company, which was authorised and regulated by the Gibraltar Financial Services Commission (GFSC), operated in the UK on a freedom-of-services basis, which means some UK customers hold policies with the firm.

It wrote car and motorcycle insurance policies for UK customers via its intermediary, but stopped writing new business in January 2025.

According to the FCA, customers remain covered for now, but the level of protection for ongoing claims could vary depending on individual policy terms.

The regulator urged affected motorists to arrange replacement cover before their current policies expire to avoid being left uninsured.

An FCA spokesperson said: “To avoid future potential claims not being fully covered, customers of the firm should consider securing alternative motor insurance as soon as possible.”

Compensation and advice

The GFSC confirmed that Freddie White and Bradley Chadwick of Grant Thornton had been appointed as joint administrators of the Gibraltar-based insurer.

The GFSC added that the administrators would work closely with the UK’s Financial Services Compensation Scheme (FSCS) to ensure valid and eligible claims are settled.

However, no new mid-term policy changes such as vehicle swaps or address updates can be processed during the administration period.

Grant Thornton stated that existing policies would continue to be managed, with claims handled by Davies Group. The administrators also cautioned that some policies could be formally cancelled – known as “disclaimed policies” – as part of the insolvency process, with affected customers to be notified directly.

Eligible UK customers are expected to receive compensation through the FSCS. Those needing assistance in finding new cover have been directed to contact their existing brokers or Biba for guidance.

The FCA emphasised that the administration applies solely to Premier Insurance Company in Gibraltar and not to any other similarly named UK-based firms.