Motorbike insurer MCE falls into administration - what it means for its 105,000 policyholders

MSE_Emily

MCE Insurance Company, one of the UK's biggest motorbike insurers, has fallen into administration. The collapse affects around 105,000 policyholders but MSE can confirm that customers will continue to be covered until the end of their policy and claims will still be paid...

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Motorbike insurer MCE falls into administration - what it means for its 105,000 policyholders

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Sandtree

The insurance arm, and the parent company, were both Gibraltar based rather than the UK writing business under passporting rules. 

Probably worth only noting that FSCS protection under Motor only covers UK registered vehicles and only 90% of first party claims (but 100% of third party) 

Ivan2112

I am not convinced that the administrators/regulator  will allow all policies to run their course which for some will be virtually 12 months. The administrators/regulators  may look at the potential for new claims to come in and not want those costs on top of the mess they are already dealing with.  If for example on 1 Feb 2022 i crash my £30k Ducati and the pillion has life changing injuries and the claim is reserved at £2m - someone will ask the regulator/administrator why that risk was still on the books ?

If they cancel all polices from 31 December 2021 at least that stems the tide , shuts off new claims and they can then concentrate and reserve for those existing claims only.

Sandtree

Ivan2112 said:

I am not convinced that the administrators/regulator  will allow all policies to run their course which for some will be virtually 12 months. The administrators/regulators  may look at the potential for new claims to come in and not want those costs on top of the mess they are already dealing with.  If for example on 1 Feb 2022 i crash my £30k Ducati and the pillion has life changing injuries and the claim is reserved at £2m - someone will ask the regulator/administrator why that risk was still on the books ?

If they cancel all polices from 31 December 2021 at least that stems the tide , shuts off new claims and they can then concentrate and reserve for those existing claims only.

First of all you have to remember the disconnect here, the Regulator for the company is the Gibraltar Financial Services Commission rather than the PRA and FCA that it would be were it a UK entity. The organisation payout on the claims will be the UK's FSCS for all policies sold into the UK on UK registered vehicles.

Given its relatively short tail business it may be a case of passing it to an insurer with a chunk of money to deal with it topped up if it runs out. Were it long tail and if it came with renewal rights then it could potentially have been "sold" but the Part VII transfer process is far too long winded for that.

Ivan2112

The regulator has now announced that they will not be accepting Mid Term Adjustments on policies , so that they do not take on further exposure.  I do not see it being a problem during the winter months for most motorcyclists with them, but it could cause an issue come spring 2022.  Clients will not be happy to find they cannot do anything with their paid for policy.

Ivan2112

Now seems likely that all existing policies will be cancelled and not allowed to run to renewal.  MCE are arguing at the moment with the regulator over the date but it will be January or Feb 2022.  

yesokaymaybe

Hi there. 

Im currently with MCE previous policy with them and just renewed with them - I paid £480 upfront end of October and £280 every month for 8 months. 

This is the email I have received from them:
Your policy of insurance is underwritten (or is provided to you) by the Company, which is in Administration.  The Company’s permission to write insurance was suspended on 5 November 2021.

Due to the financial position of the Company, the Joint Administrators intention is to disclaim all motorcar and van insurance policies (i.e. all motor insurance policies which do not insure either a motor bike or scooter) at 24:00hrs (being midnight) on 14 January 2022. 

This means that when your policy of insurance is disclaimed, your insurance policy will cease or, in other words, end.

This means that you will need to seek and put in place alternative insurances prior to your policy being disclaimed on 14 January 2022. 

Up until your policy is disclaimed, and on the basis that you are fully complying with the terms and conditions of your policy of insurance, your policy will remain valid.  No adjustments will be permitted to your policy from today except for administrative adjustments which do not affect the risk associated with the policy of insurance – such as correction to the spelling of a name for example.

- I cannot afford to pay £280 today for MCE to then cancel my insurance on the 14th Jan and then wait however long being refunded by the FSCS - they are trying to play it as if this is definitely happening in dither correspondence but I get the feeling they are choosing their words wisely and are unsure if they will get the insurance policies disclaimed - can someone please help me as this website or the money saving expert post re MCE states they are going to honour the insurance policies but the insurance company is saying they are not going to. 

thetriggerhappypwner

It happened. All policies will cease after 31st January 2022 for everyone, as per this email I got around 30 minutes ago:

Your Policy is Ending on 31/01/2022

Dear Xxxxxx   Green Realisations 123 Limited (formerly MCE Insurance Company Limited) (In Administration) (“the Company”)   This communication is provided to you by the Joint Administrators of the Company and contains important information which affects your insurance policy.    Andrew Stoneman and Geoffrey Bouchier of Kroll were appointed Joint Administrators of the Company on 19 November 2021 by Order of the Supreme Court of Gibraltar. Both are licensed to act as Insolvency Practitioners. Andrew Stoneman is licensed in Gibraltar while Geoffrey Bouchier is licensed in England and Wales.   Please read this communication in full as it requires you to take action.

Intention to Disclaim your Insurance Policy Your policy of insurance is underwritten (or is provided to you) by the Company, which is in Administration.  The Company’s permission to write insurance was suspended on 5 November 2021. Due to the financial position of the Company, the Joint Administrators intention is to disclaim all motor bike and scooter insurance policies as at 24:00hrs (being midnight) on Monday, 31 January 2022.   This means that when your policy of insurance is disclaimed, your insurance policy will cease or, in other words, end. This means that you will need to seek and put in place alternative insurances prior to your policy being disclaimed on 31 January 2022.   Up until your policy is disclaimed, and on the basis that you are fully complying with the terms and conditions of your policy of insurance, your policy will remain valid.  No adjustments will be permitted to your policy from today except for administrative adjustments which do not affect the risk associated with the policy of insurance – such as correction to the spelling of a name for example.   Am I eligible for a refund?  If you paid for your insurance policy in one lump sum at the commencement of your policy of insurance or your paid monthly amount includes insurance cover for the period after 31 January 2022, you are likely to be eligible for a refund for the unused portion of your insurance policy by the Financial Services Compensation Scheme (“FSCS”), subject to eligibility and their compensation rules.  The FSCS may write to you separately. You can find information on the FSCS on their website at https://www.fscs.org.uk/what-we-cover/insurance/ and https://www.fscs.org.uk/making-a-claim/failed-firms/mce-insurance/               Claims Claims arising from insurance policies issued by the Company prior to and up to the date policies are disclaimed will continue to be handled by MCE Insurance Limited (“MCE UK”). MCE UK handled claims for the Company prior to the Joint Administrators’ appointment as well as providing other services.  Their contact details are shown below: via Live Chat on the website (www.mceinsurance.com) email: info@mceinsurance.com Customer Experience Team: +44 193 335 1361.   MCE UK is not in Administration and is a separate business to that of the Company. MCE UK and the Joint Administrators will liaise with the Financial Services Compensation Scheme in relation to eligible insurance claims.   Arranging new insurance Please contact your broker MCE UK to arrange alternative cover or if you are not sure, it’s very important that you talk to an expert about replacement cover for the future, please contact an insurance broker who specialises in motor insurance policies.   If needed you can use the British Insurance Brokers’ Association’s “Find Insurance”-service. You can find this at  https://insurance.biba.org.uk/find-insurance or you can phone them on 0370 950 1790.   Additional Assistance   If you believe your circumstances warrant additional consideration, or have specific needs in the way we communicate with you, please let us know – contact details above.   What happens Next? The Joint Administrators will contact you again to remind you of the intention to disclaim on 31 January 2022. The Joint Administrators will also provide you with a copy of the notice of disclaimer in due course for your records.   Yours faithfully For and on behalf of Green Realisations 123 Limited (formerly MCE Insurance Company Limited)

Edd_Reed

Confirmed, thought it was spam first of all. They should be giving full policy refunds to non claimers compensate for the loss of no claims bonus.

Dittany

I received the same email last night. They initially stated that all existing policies would continue to be honoured, but now say they will all end on Jan 31st 2022, and we will have to apply for refunds through the FSCS which will take ages. My annual policy with them was paid up front and expires in July 2022. Now I have to find and fund a new policy?!!

lisyloo

Dittany said:

I received the same email last night. They initially stated that all existing policies would continue to be honoured, but now say they will all end on Jan 31st 2022, and we will have to apply for refunds through the FSCS which will take ages. My annual policy with them was paid up front and expires in July 2022. Now I have to find and fund a new policy?!!

It won’t necessarily take ages but will take some time - yes.
frustrating I agree but I would have thought this is mostly good news that you will mostly not be out of pocket as you are protected.
yes claims take time and we are all aware of things taking longer due to the workforce isolating.
I sympathise with your frustration but I think this is 90% good news that as a consumer you are protected.
your glass is 90% full