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Danish company Alpha Insurance, caught up in the troubles of its primary reinsurer NZ-based CBL Insurance Limited, has been declared bankrupt, it has been revealed.
The bankruptcy proceedings follow on from Alpha Insurance announcing it had ceased all underwriting of new business back on March 04, a move seen as a direct consequence of CBL Insurance having been placed into interim liquidation. Alpha filed for voluntary liquidation less than two weeks on from CBL going into administration.
On May 08, thousands of drivers in London received a text message saying their insurance was cancelled, effective immediately.
According to a report from the BBC, as many as 700 taxi drivers and 10,000 minicab drivers who are policyholders of Alpha are impacted by the news.
Drivers were advised by the Danish Financial Supervisory Authority to urgently obtain compulsory cover from another provider.
