More the opposite of that, a subsidiary has failed and is not being replaced.
MCE Insurance, the U.K. broker, exclusively use a single underwriter.
Until November 5th that was MCE Insurance Company, a subsidiary registered in Gibraltar.
From November 10th that exclusive underwriting contract is now held by Sabre Insurance Group, a separate company based in the U.K.
So apart from a few days at the start of the month when MCE were unable to issue new policies, they are trading as normal. However the new underwriter obviously will use their own different judgment on the business they accept and how much they charge for it.
On November 19th MCE Insurance Company (the Gibraltar registered subsidiary) has gone into administration. Which depending on what will happen may affect existing policies until they expire. Sabre’s contract contains no obligations to take on any of their existing policies or claims.
It would have been a lot clearer if MCE had been honest at the start about what is going on instead of playing silly buggers in how they released the details a bit at a time.
The Financial Services Compensation Scheme (FSCS) on 19 November 2021, declared that the Gibraltar-based insurance company MCE Insurance Company Limited has failed. As a result, this insurer is no longer paying claims. FSCS is stepping in to protect most of the motor insurance policies that MCE Insurance Company Limited sold to individuals and small businesses in the UK.
The broker MCE Insurance Limited (MCE UK) based in Northamptonshire provides various administration services including claims management, to the Company under a Service Agreement. MCE UK is not part of the Administration process.
Second bold for reassurance, first bold for panic! That is not something MCE has told us customers. They only said in their email that “We are working with KROLL to understand how claims payments can be made via the FSCS with the minimum inconvenience for policyholders.”