Northampton broker sells motor policies of mystery European insurer
A mysterious European motor insurer is set to break into the UK market next year.
Intermediary Cover Direct has started selling policies for the insurer. The company is headed by ex-Servico director Stephen Arnold.
Cover Direct refused to disclose the underwriter of its cut-price policies and told Insurance Times to "wait and see". The company does not have GISC membership, so it is not compelled to release this information.
Arnold was not available for comment.Cover Direct was incorporated on 16 April and operates from intermediary Servico's original premises in Northampton.
Servico had a troubled history before being dissolved in February this year. It served a £100,000 writ on its former underwriter, CNA Insurance, for unpaid commission.
The Association of Insurance Intermediaries and Brokers (Aiib) warned brokers off the company.
Cover Direct's premises are currently home to Taxiplan Insurance Services, which was this year accused of offering overpriced franchises to the hard fleet and public and private hire market.
Taxiplan's flyers carried the GISC logo, but it was never a GISC member. The flyers stated it represented a "major European insurer" and employees refused to disclose the underwriter. This was a breach of GISC rules.
First Easy Insurance Services also operates from the Northampton address. It offers young driver, car and van fleet, light haulage, heavy goods and van-and-man schemes also underwritten by a "major European insurer".