Major insurance coverage firm plunges into administration – 16,000 insurance policies cancelled | UK | News | EUROtoday

Some 16,000 policyholders have been left unprotected after a Gibraltar-based motor insurance coverage firm serving UK clients plunged into administration in October final 12 months. As a part of the administration course of, the joint directors formally terminated the remaining insurance coverage insurance policies on December 1, warning clients that they might be left with out cowl.

On October 14, Premier Insurance Company Limited (Premier Insurance), which primarily offered motor insurance policies to UK people and small companies, was positioned into administration following an software to the Supreme Court of Gibraltar. It then stopped writing new insurance policies in January 2025, that means the final will expire by the tip of this month. In a brand new replace printed on January 15, the Financial Conduct Authority (FCA) has warned that, though all clients presently have motor insurance coverage cowl, the kind of coverage held might have an effect on the extent of protection for some claims.

Premier Insurance, regulated by the Gibraltar Financial Services Commission (GFSC), operated within the UK on a freedom-of-services foundation, that means some UK clients maintain insurance policies with the agency. Policies had been offered within the UK via varied insurance coverage brokers through the agency’s UK-based middleman, Premier Underwriting Ltd.

In October, Freddie White and Bradley Chadwick of Grant Thornton had been appointed as joint directors for the corporate.

Customers have been suggested of their subsequent steps and are urged to search out new insurance coverage instantly, as insurance policies ended on December 1, 2025, and the FSCS solely protects towards losses, not the complete coverage worth, in accordance with Which?. Eligible UK clients of Premier Insurance are protected by the Financial Services Compensation Scheme (FSCS).

The FCA’s newest replace reads: “For all customers, your policy will not be renewed when it comes to an end. This means you’ll need to arrange new insurance before your current cover expires to make sure you stay protected.”

It provides: “If you’re affected, your broker will contact you directly to discuss options for arranging alternative cover.

“Motor insurance coverage is obligatory. It is an offence to make use of your car with out it. Make certain you might have legitimate insurance coverage cowl on your car – in case you are unsure in case your cowl is affected, contact your dealer.

“If you need help to secure cover, you may wish to contact your existing broker or the British Insurance Brokers Association (BIBA) who can provide details of brokers that may be able to help you.”

Driving with out insurance coverage is illegitimate. Even if it’s only for a day, driving uninsured can land you in scorching water, and in case you get caught, you might face penalties together with a high-quality of £300, six penalty factors and a limiteless high-quality and driving disqualification if the case goes to court docket. The police may seize and doubtlessly destroy your car.