Context
The FCA has published an announcement on its website to confirm that MCE Insurance Company Limited (MCE) has entered administration. MCE is an insurance firm authorised and regulated by the Gibraltar Financial Services Commission (GFSC). The business operated in the UK on a freedom of services basis which means customers based in the UK may hold policies with the firm. Policies were sold in the UK through their UK based broker, MCE Insurance Ltd (MCE UK).
Key points to note
- The company ceased writing new insurance on 5th November 2021. They predominantly wrote motorbike and car insurance policies specifically for UK customers.
- Although MCE Insurance (according to industry press) has alleged that it tabled proposals to “immediately meet any shortfall” in the capital requirements of its Gibraltar-based insurer, these were allegedly declined by the Gibraltar Financial Services Commission. Following an application for administration to the Supreme Court of Gibraltar the company was placed into administration on 19th November 2021.
- Andrew Stoneman and Geoff Bouchier of Kroll (Gibraltar) Limited have been appointed as joint administrators of the company, and details of their involvement and information about claims and renewals can be found on their website.
- Existing insurance policies remain in force and are valid, and policies will continue to be administered by the UK broker MCE UK.
- A link to the FSCS page can be found here where the FSCS has, with MCE being no longer able to pay claims, declared the firm in default on 19th November 2021 and is stepping in to protect the majority of policies MCE sold to individuals and small businesses in the UK.
- FSCS is working closely with the appointed Joint Administrators, Andrew Stoneman and Geoff Bouchier of Kroll (Gibraltar), and the Gibraltar Financial Service Commission to understand the impact of the insurance firm’s failure. It will continue to update its web page with the latest developments.
Next actions
If you have written any business with MCE, most likely through MCE UK, you may wish to contact MCE UK to ascertain the current position and contact any affected clients.