As an insurance broker, our job is to find you the right product at the right price, however, this does not have any impact on the quality and reliability of cover that you have.
What do we mean by that? In some cases, brokers will be keen to get you cover no matter what and that means they will look far and wide to secure you a policy.
Looking far and wide is ok, however, you should always ensure that you are covered by a UK FCA regulated insurer.
Some brokers may place your insurance with an offshore insurer, however, beware of this as they are not regulated by the FCA and you could be in for a bumpy ride.
As well as not needing to strictly adhere to UK regulations because they are not regulated by UK standards, a number of large offshore insurers have gone out of business in the past decade and left thousands needing to switch insurer with minimal notice.
This is not a position that you want to find yourself in; particularly as UK regulations and rules on insurance companies becoming insolvent do not apply. Some examples of companies who have gone into liquidation over the past 10 years are:
- Gable Insurance AG, who went into liquidation in 2016
- Balva, who went into liquidation in 2013
- Quinn Direct, who went into liquidation in 2010
- Millbrook, who went into liquidation
- European Risk Ins Co, who went into liquidation in 2014
If you are concerned about your insurance cover, or have any questions, our team would be more than happy to help. Just drop us a call and we will talk you through your options!