Edward Hill, INSHUR’s Head of Underwriting considers the impact of UK taxi insurance company, Alpha Insurance’s recent collapse and if any lessons have been learned from this.
Thousands of taxi drivers have been left without any coverage following the demise of yet another insurance company. This time in the UK, Alpha Insurance is the latest to fail, resulting in a potentially disastrous situation for drivers who are left unable to work and suffering personal financial losses as a result. The story is not unique; the same has been seen closer to home with several NY carriers going into liquidation recently. These occurrences highlight the need for drivers to question brokers about their insurance company.
It is vital that drivers make sure their insurer has an adequate financial security rating or a suitable solvency provision. If you are not currently insured with INSHUR and you are concerned about your own insurance provider then speak to your broker. Many insurers are rated on their financial security, and these ratings can be checked with specialist rating agencies, such as A.M. Best.
These specialist agencies rate the financial stability of insurance carriers. Bear in mind that it isn’t compulsory for a company to be rated, so only those that chose to do so will go through the process. If your insurer is not rated then check out their solvency position and previous financial track record – your broker will be able to assist you with this. If you are covered with INSHUR in NYC, you are in good hands.
We are backed by an A- rated carrier called Clear Blue Insurance Company. It’s crucial that you buy the right policy from an insurer that you can rely on.
Here are a few tips that you should seriously consider when choosing your next policy (remember, the cheapest option isn’t always the best):
1. Who is the insurer? Ask your broker who the insurer is. Have you heard of them before and do they have an excellent reputation in the market
2. Financial strength, Is the insurer financially stable? Ask your broker what the security rating/solvency position is of each of their insurers. In the US, the most well known insurance rating agency is A.M. Best, if your insurer is rated you will find the rating on their website.
3. Claims process – Ensure you fully understand the claims reporting process and timescales for reporting a claim. Many insurers put strict timescales when reporting a claim.
4. Coverage – Do you have the correct coverage for your vehicle