On 23 October 2020, the FCA imposed various requirements on Inspire Insurance Services Limited (Inspire). Among other things, Inspire was required to immediately cease conducting regulated business, including arranging insurance contracts. Details of the requirements can be viewed on the Financial Services Register.
On 6 November 2020, Andrew Fender and Sandra Fender of Sanderlings Accountancy Services were appointed as joint liquidators of Inspire.
What does this mean for UK customers’ insurance contracts?
Customers who have purchased an insurance policy through Inspire are encouraged to contact their insurer directly to confirm the status of their insurance policy. Details of who this is can be found in their policy schedule which summarises the insurance policy.
Who should UK customers contact if they need to discuss their circumstances?
Customers who need to discuss their circumstances should contact their insurer in the first instance. In particular:
- Customers making a mid-term adjustment or who have a new or existing claim should contact their insurer.
- Customers who are approaching their policy renewal can contact their insurer, or another broker.
If a refund is sought from Inspire, rather than the insurer, customers should contact Inspire’s liquidators, Andrew Fender and Sandra Fender of Sanderlings Accountancy Services Limited, using the details below:
- Email address: [email protected]
- Telephone number: 01564 700 052
- Address: Sanderling House, Springbrook Lane, Earlswood, Solihull B94 5SG
What is FSCS and will it cover any losses?
The Financial Services Compensation Scheme (FSCS) is the compensation scheme for customers of UK-authorised financial services firms and it protects consumers when financial services firms fail. It is the compensation scheme for customers of UK-authorised financial services firms.
FSCS has eligibility criteria both in respect of the people and businesses who are covered. The eligibility for small businesses, limited companies and charities is assessed by FSCS on a case-by-case basis as it varies for different types of claim. A general guide to the eligibility rules for businesses can be found on the FSCS website in the Insurance Section.
Further details of the type of claims that can be made in respect of a failed Insurance Broker are detailed here.
One of the circumstances in which customers may be able to claim compensation is if an insurance broker received but did not properly place cover with an Insurer before it failed.
For general insurance intermediaries, cover is 100% for compulsory insurance, and either 100% or 90% for other types of insurance.
FSCS is not currently open to claims against Inspire. FSCS is working closely with Inspire’s liquidators to understand how customers have been impacted by the failure of Inspire and the best way to deal with claims. Customers of Inspire can get the latest news and register for updates here.
This news item was originally published by the Financial Conduct Authority (FCA UK). For more information, please see the Source Link.