Drake Insurance plc goes into provisional liquidation
12/05/2000
Provisional Liquidators have been appointed to Drake Insurance plc (Drake). The provisional liquidators release is attached to this FSA release. The Financial Services Authority took action on 9 May to stop Drake from taking on any new business.
The Policyholders Protection Board has agreed to exercise its discretion to assist with the payment of policy claims on the basis set out in the provisional liquidators release. Policyholders should not contact the Policyholders Protection Board direct. They should contact their brokers or agents for further information. In addition there is a helpline at the company, where the companys staff or the Provisional Liquidators staff will able to assist.
The helpline number for policyholders and brokers of Drake Insurance plc is 01273 863301.
Drake is a specialist motor insurer based in Brighton, employing around 170 staff. It has around 180,000 policyholders and wrote business in a number of market niches. Its policies were sold through intermediaries. In 1998, the last year for which full data are available, it had an approximately 0.6% share of the UK motor insurance market.
Notes for editors
- The FSA is the independent body established by parliament to regulate the financial services industry and protect consumers.
- On 9 May the FSA took action to require Drake to cease underwriting, under a Notice of Requirements issued under section 45 of the Insurance Companies Act 1982. The FSA regulates insurance companies on behalf of the Treasury under existing legislation, most of which will be replaced in due course by the Financial Services and Markets Bill when this takes effect.