Final sign-off is intended to be provided on Wednesday 24 July

The Finanacial Services Compensation Scheme (FSCS) has revealed that it has come to an agreement with a new, solvent insurer to provide replacement cover for Alpha Insurance’s Latent Defect policyholders.

In an update on the company website, the FSCS said: ”The FSCS is able to confirm that a deal to secure replacement cover for Alpha Insurance’s Latent Defect policyholders has now been agreed (subject to contract) with a new, solvent insurer.”

It also said that “all parties intent to provide final sign-off on Wednesday 24 July”.

Previously, the FSCS hoped to provide a comprehensive update on 8 July but said the quest for an agreement was still ongoing, but it appears that agreement has now been secured.

A long year

It has now been over a year since Danish insurer, Alpha was declared bankrupt.

The FSCS has been providing updates on the search for replacement cover for Alpha policyholders, working with BCR Legal, CRL Management and the Alpha liquidator. That search appeared to hit stumbling blocks, but now, it says the a deal has been agreed.

The replacement insurer has not been identified.

The deal is still subject to contract but the FSCS hopes for it to be confirmed on 24 July.