CRL stops writing new business amid Alpha fallout

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The FSCS has been advised that all queries are being redirected to BCR.

CRL Management has stopped writing new business, the Financial Services Compensation Scheme (FSCS) has confirmed.

CRL is an appointed representative of BCR Legal Group, which operated under authority from Alpha Insurance to sell latent/structural defect insurance policies in the UK.

Unrated Danish provider Alpha was declared bankrupt in May 2018.

All calls and enquiries to CRL regarding Alpha are being redirected to BCR. The FSCS has been assured by BCR that these enquiries are being dealt with as normal.

The FSCS advised customers to contact BCR should they have any questions about their cover.

Troubles
During its efforts to find replacement cover for Alpha policies, the FSCS extended its deadline for CRL to find an alternative insurer several times since the initial March 2019 deadline.

However, following the collapse of a proposed deal with BCR on 1 August, the FSCS announced on 19 August that it would pay compensation to around 14,000 policyholders by 15 September.

The organisation said it would write to the remaining 6,500 policyholders with instructions for submitting claims within two weeks.

This was not the first refund paid by the FSCS in relation to Alpha. In May 2019, it refunded a total of £6.9m in premiums across 9,000 commercial taxi drivers who were insured by Alpha managing general agent Capital Underwriting Agency.

Insurance Age has approached CRL for comment. 

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