What's happening with MCE?

er-minio

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I have my bikes insured with MCE.
I've been receiving a few emails lately saying that they were switching the underwriters, that for a little while they wouldn't have been able to give new quotes, etc.

Now:

With effect from 19th November 2021, MCE Insurance Company Limited based in Gibraltar went into Administration. KROLL have been appointed to manage the run off of the business and have been appointed as the administrator for MCE Insurance Company Limited.


MCE Insurance Limited UK is not affected by this however, we are working hard to ensure all customers are regularly updated about this matter.


Has anything changed?

Your policy will continue to run as normal for the duration of your policy term. However, as part of the run off, KROLL has instructed that all claims payments should be paid via the Financial Services Compensation Scheme (FSCS) with effect from the 19th November 2021.


I’ve made a claim, what happens now?

MCE Insurance Limited UK will continue to log any new claims and manage existing ones and are working with KROLL to understand how claims payments can be made via the FSCS with the minimum inconvenience for policyholders.

Once we have a clearer picture of how this process works, we will update all policyholders.



I haven’t made a claim, what happens now?

Your policy will continue to run as normal for the duration of your policy term. Should you need to make a make a change, access your documents or contact us about anything in relation to your policy, you will still be able to do this up until your renewal date.


If you do need to make a claim, we can do this for you and will continue to manage the process throughout. We are working with KROLL to understand how claims payments can be made via the FSCS with the minimum inconvenience for policyholders. Once we have a clearer picture of how this process works, we will update all policyholders.


Out of curiosity...
Are they going under regardless of what they say in these emails?
Or is it just normal procedures/moving companies around?
 
I got the same message, policy is due to expire today so want to get a renewal
 

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Just had a chat with them on the online portal. Arse and Elbows seem easily confused with them, the email says one part of MCE has gone bust, but the UK MCE is still Ok and using another underwriter
 
https://www.proactiveinvestors.co.u...clusive-underwriter-deal-with-mce-965823.html says MCE (the UK company) has done a deal with a new underwriter

I suspect all new policies will be with the new underwriter but they are not taking on existing policies

There has been a lot of changes in the insurance world where underwriters have been based overseas - we have had threads about travel insurers not issuing new policies or changing underwriter. It's that B word again in some cases but maybe not the case with this MCE company based in Gibraltar.
 
It looks to me like:

The UK insurance broking arm MCE Insurance Ltd UK which, besides other things, fed business to the Gibraltar based insurer, MCE Insurance Company Limited, is still alive and trading.

The Gibraltar based insurer MCE Insurance Company Limited, has gone bust / shut its doors and will now be closed down by Kroll, acting as an administrator / liquidator. Things like this happen from time to time.

It seems that policies issued by the Gibraltar based insurance company are still live, not least as the Gibraltar based regulator / government (let alone the UK regulator and government) don’t want hundreds of uninsured vehicles live on the roads of Europe.

In the meantime, policy holders, whose policies are still live are protected, not least by the The Financial Services Compensation Scheme (FSCS) which is
the UK's statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it.

I don’t know what similar scheme may be in place in Gibraltar or indeed if there is one at all. If there is, it’s a fairly safe bet that it will be small beans compared with the UK scheme. Just be thankful that the UK door is open.

What will happen next? A good question. I guess that Kroll’s first task will be to establish the existing premiums that the insurer holds, the current level of liabilities (claims) and estimate the future claims falling under policies that are still live, as there will undoubtedly be some. Then, try to find a buyer for the business, if possible. If they can’t then bods will still have the protection of the FCS until their individual policy renews. Note: Third party claims are paid in full by the FCS, whilst first party (ie damage to or theft of your bike, assuming you bought fully comprehensive cover) are indemnified to 90% of the claim’s value. That’s just the way it is and it’s better than getting feck all.

Bods moan about insurance premiums all day long. They might moan a bit less now that they are protected when their insurer goes bust. That pound or two that went into the FCS’s coffers and was begrudgingly paid by bods as a part of their ‘rip off, mate’ premium is suddenly looking like remarkably good value.

If I were a customer of MCE, which I am not, I’d not be rushing out to call them to say, “Mate, I’ve bought a new awesome steed. Quote me cheap, mate” as they won’t even answer the phone. Think about that if you are with MCE and have a new bike arriving on your doorstep over the next few days, weeks or even months; you’ll need to find a new insurer to rip you off.
 
Thanks Richard.
No changes to the garage composition so far, I'll wait till renewal and see where else to go, if needed.
 
I've got a couple of policies with them, and my reading of it is whatever you do don't have an accident (like we ever want to!). Me thinks making a claim now will be even more painful than normal!
 
Latest email I got from there (10 days ago) says that they are now actively processing any claims via FSCS.
Midterm adjustments in the policies can be adjusted.

I guess new policies will go through a new underwriter.
 
Hey everyone, apologies for bumping the thread.

Does anyone still have insurance with MCE?

I knew this about to happen and I stupidly forgot to be proactive when I started to receive emails about MCE (Gibraltar) going into admin. BUT it seems they have finally gone bust (MCE UK is still trading) I have just received an email saying my policy will end 31/01/22 (renewal was due 20/04/22)

I am a little frustrated now because I paid for the full policy up front, and the email says I could be entitled to a refund for the unused part of my policy yet I would need to contact FSCS, which I feel is going to be a complete ball-ache.

My question is, does anyone have a policy, are you affected, and will you be pursuing a refund?
 
Last edited:
Hey everyone, apologies for bumping the thread.

Does anyone still have insurance with MCE?

I knew this about to happen and I stupidly forgot to be proactive when I started to receive emails about MCE (Gibraltar) going into admin. BUT it seems they have finally gone bust (MCE UK is still trading) I have just received an email saying my policy will end 31/01/22 (renewal was due 20/04/22)

I am a little frustrated now because I paid for the full policy up front, and the email says I could be entitled to a refund for the unused part of my policy yet I would need to contact FSCS, which I feel is going to be a complete ball-ache.

My question is, does anyone have a policy, are you affected, and will you be pursuing a refund?
Yes, yes and yes.
What do I win?
Alan R
 
Yes, I got the same email.
My policy was to renew in May and, yes, I normally pay in full and will seek refund, even if I doubt I’ll get it.
 
Hey everyone, apologies for bumping the thread.

Does anyone still have insurance with MCE?

I knew this about to happen and I stupidly forgot to be proactive when I started to receive emails about MCE (Gibraltar) going into admin. BUT it seems they have finally gone bust (MCE UK is still trading) I have just received an email saying my policy will end 31/01/22 (renewal was due 20/04/22)

I am a little frustrated now because I paid for the full policy up front, and the email says I could be entitled to a refund for the unused part of my policy yet I would need to contact FSCS, which I feel is going to be a complete ball-ache.

My question is, does anyone have a policy, are you affected, and will you be pursuing a refund?

if you paid by credit card you might be able to get a refund from them, assuming the cost was over £100
 
Carol Nash wouldn't quote me online. I'll call them this week.

MCE (the MCE that went under was the company in Gibraltar, not the broker over here) funnily enough quoted just slightly over the premium I was paying. They want 780, I was paying 660 or something.

Oh well, gonna be fun re-doing all the quotes.
 


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