Adrian Flux underwriters gone bust

[HarryM1BYT]

Originally Posted by wraymond

I'm with Adrian Flux, or at least the on-line branch Fluxdirect. It was the only one I could find that offered 3rdPF&T at a decent rate. Phoned them today, she nearly dropped the phone. Kept me hanging while she went to the office manager and came back in a much better mood. It was the broker that had the trouble, the Insurer (who is also the Underwriter) is fine.

Could you run that past me again Ray please?

Just to make clear what I understand of it...

AF is just the broker and so far as I am aware they do not have any financial issues.

Midas/ Enterprise are one of the insurers who AF broker for, which is the insurer which is in trouble, as maybe are their customers who have insured with them via AF.

[Weso]

Originally Posted by HarryM1BYT

Could you run that past me again Ray please?

Just to make clear what I understand of it...

AF is just the broker and so far as I am aware they do not have any financial issues.

Midas/ Enterprise are one of the insurers who AF broker for, which is the insurer which is in trouble, as maybe are their customers who have insured with them via AF.

Agreed Harry, think the previous post is somewhat confusing. AF are a broker, brokers rarely go bust as they don't carry any risk. The Insurer (effectively the underwriter) carry the risk and as in this instance a couple of them have seemingly folded.

As the market becomes ever more competitive and price is everything brokers will seek out less secure markets / Insurers / underwriters who have less reserves, registered overseas etc as these invariably quote cheaper

[wraymond]

Originally Posted by HarryM1BYT

Could you run that past me again Ray please?

Just to make clear what I understand of it...

AF is just the broker and so far as I am aware they do not have any financial issues.

Midas/ Enterprise are one of the insurers who AF broker for, which is the insurer which is in trouble, as maybe are their customers who have insured with them via AF.

Yes, happy to clarify and my apologies if I have got it wrong!

From the bottom of the company's correspondence:

"Flux Direct is a trading name of Adrian Flux Insurance Group and used under licence by HIC. Authorised and regulated by the FCA".

The failed company is a broker and is the company being under investigation by officials. The Insurer is Enterprise Insurance Company and is now in default. I spoke to Fluxdirect today and they told me they were trading as normal and have no record of these events. They told me my policy was in force and unaffected. However, I will contact them again tomorrow and seek further clarification.

The original notice in post 1 says "An underwriter has gone bust. Only A. Flux customers are affected. If your insurance is underwritten by Midas Insurance you may no longer have cover". I suspect there may be an error in their reporting.

Midas are underwriters for Enterprise and only those two company's are involved in this.

[MSS]

This is my assessment of the situation.

1. Some policies taken out via AF (acting as a broker) are underwritten by MIDAS and (possibly) insured by Enterprise (a non-UK company but authorised to operate in the UK).

2. Enterprise are now insolvent and barred from insuring new policies by their home regulator.

3. Whilst MIDAS and AF continue to operate as businesses, some (but not all because AF also use other underwriters and insurers) policies brokered by AF and underwritten by MIDAS are (possibly) affected by the Enterprise insolvency.

4. Anyone whose insurance documentation mentions MIDAS or Enterprise should have some cause for concern, if only because their claims are likey to be handled differently and there may be a small reduction in non-compulsory cover.

Here are some relevant links specifically related to the situation as it currently stands and details of the FSCS protection.

http://www.midasuw.com/news/

http://www.fscs.org.uk/news/2016/jul...ow-in-default/

The latter has already been provided in other posts.