Sad times at MCE as the specialist motorcycle insurance broker goes under. There is a statement on the MCE website offering policyholders useful advice and an Insolvency company has been appointed to wind things down. It’s the end of a long road for MCE, who have pumped millions into the UK motorcycle scene with shows and club events, biking charities, plus the BSB race series. MCE were headline sponsors of BSB for NINE years, (2008-17) arguably when British Superbikes was at its peak, with some well funded teams and super talented riders in there, plus live terrestrial TV broadcasts.
MCE also sponsored the Ulster Grand Prix in 2016-19, which many bikers appreciate helped to play a part in keeping real roads racing alive for a few more seasons, until Covid came along.
For many years the MCE mascot, Big Ed, with his outsized crash helmet, was a regular feature at the NEC show and many other events. MCE brought a bit of fun to shows, as well as hard cash to help make them happen. But in recent years MCE hit several potholes on the road before the crash.
THE GIBRALTAR BODY BLOW
MCE pulled out of Ireland back in 2018, but that was no surprise to many in the motorcycle insurance broking sector. Your IE editor spent 10 years working for Carole Nash and knows how tough the Irish market is, how varied and sometimes imaginative the claims can be.
But perhaps the biggest blow to the brand was the collapse of capacity and demise of its Gibraltar operation Green Realisations 123. You can read the FCA update from 2021 on that here.
At the time, MCE CEO Julian Edwards was upset at what he saw as sharp practice within Gibraltar which left a sour taste. Edwards made some remarkable comments to Insurance Business back in 2021;
“I have independent witnesses to documented lies from the GFSC,” he said. “I have found myself speechless on a large number of occasions as these aren’t small fabs, they’re material lies that have led to a cessation order which, in turn, has led to the complete restructuring of the business where a high number of jobs have been placed at risk of redundancy. We’re in a consultation period on that now. But it’s not only the people who work for me that are being affected – MCE has a huge value chain… so undoubtedly some business partners of MCE are going through a similar process now.”
The local regulator in Gibraltar denied Edwards’ claims, and despite threats of legal action, nothing concrete ever made it to IE’s inbox. A Google search also revealed no legal paperwork being filed.
CONSUMER PERCEPTIONS AND BROKER REALITY
The damage done by Green Realisations 123 collapse was huge. Most bikers thought that MCE had completely gone bust, they didn’t care about the finer points of offshore MGAs, insurance product distribution or how motorcycle insurance broking works. Even consumer website MoneySavingExpert led with a headline stating “Motorbike insurer MCE falls into administration” which could be understood as meaning the entire operation was closed. Facebook and Twitter was full of bikers shouting about refunds, not being covered (untrue) and claims being denied (not true).
So MCE attempted to soldier on as a broker. Sabre continued to support them as policy underwriter. In 2022 MCE tried to launch its PAYG motorcycle insurance product, something that IE championed back in 2019. The existing annual policy options of TPF&T or Fully Comp don’t reflect the actual user experience, which is summer based, leisure biking.
MOTORCYCLE SECTOR NEEDS RADICAL OVERHAUL
The quote engines used to sell motorbike insurance by the industry are woefully outdated, with job options like parachute packer and turkey chaser still listed. Things like riding kit and accessory cover, plus valuations of real losses are not really understood by many within the sector, most of whom do not ride a motorcycle and have no idea that a crash helmet, gloves, boots and leathers can cost over £2500 brand new. Another sticking point on claims is valuations of crashed bikes, often fitted with over £3000 worth of accessories. Ignoring these very real, and painful, losses to the consumer is the source of lengthy argument and bad feeling when things go wrong. Simply tapping a Reg plate into Glass’s Guide and sending a trade PX value out as a settlement doesn’t reflect the true loss.
So insuring all those risks, on a menu type app, and paying per trip, actually fits the lifestyle of about 70% of the UK biker parc of about 1.3 million. Very few bikers ride more than 4,000 miles a year, mostly between April and September. Bikers also like the idea of trying a mate’s bike for an hour one Sunday. But can you download that instant cover easily without filling in 8 pages of personal data? Nah, not really.
How about on demand pillion cover? Ideal, as most bikers don’t carry pillions, but when they do occasionally offer a lift they want that person’s riding kit, medical cover, legal, loss of earnings etc available on demand. If you build flexible, affordable insurance products, bikers will buy them.
Occasional trackday cover? That was something which MCE launched a few years back and to be fair, most insurers and brokers always walked away from it – too risky. But MCE offered the asset value cover as part of their Fully Comp package in 2014, ahead of its time you might say.
New concepts in bike insurance, new thinking from MCE was always going to be an impossibly tough sell. The Gibraltar damage was too great. In fact many bikers thought that MCE was already bust, such is the power of MoneySavingExpert forums and Facebook threads.
OFFICIAL STATEMENT EXTRACT
Here’s a word from the MCE website, which highlights how policyholders are protected. Claims will be settled. Do not stop your premiums of you are a customer, then your cover WILL be cancelled.
Thanks for the memories Big Ed, it was fun while it lasted.
MCE Insurance Limited (the Company) has been placed into administration by its directors. Steven Edwards, Vincent Green and Mark Holborow of Crowe U.K. LLP were appointed joint administrators on 17 July 2023 (the Joint Administrators).
The Company is an insurance broker based in Northamptonshire, specialising in motorbike and car insurance, and brokering and managing policies which are underwritten by Sabre Insurance Group (Sabre). The Company is authorised and supervised by the Financial Conduct Authority (FCA).
The Company will not be writing any new policies. The Joint Administrators are working closely with Sabre to find a resolution that minimises any disruption to existing policyholders and ensures they are treated fairly.
All customers’ existing policies remain in place, they will continue to have cover and are not impacted by the appointment of the Joint Administrators. There is therefore no action customers need to take. Sabre is not affected by this administration and will continue to meet valid claims made under existing policies.
Customers who pay for their policies monthly must continue to pay any premiums which are due in order to maintain cover. Failure to keep up payments for insurance may result in the policy being cancelled.
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