Safe Hands Plans Ltd, a provider of funeral plan insurance, entered liquidation in 2022 after an internal audit discovered that its reserves were insufficient to cover the obligations owed to its customers. The insolvency led to the loss of thousands of pounds for approximately 46,000 policyholders who had relied on the company’s guaranteed benefits. _2_ The collapse occurred shortly after the firm’s financial statements were reviewed by the Financial Conduct Authority (FCA), which indicated that the company had extended too many paid‑up pensions without procuring adequate capital against potential liabilities. Policy agreements required policyholders to pay a single sum either upon death or at a later date, depending on chosen plan options; the insurer failed to maintain the balance sheet capacity to honour these terms. Lawful claims for compensation were simultaneously opened in the UK courts, and the FCA announced a formal investigation into the company’s risk management processes. _3_ The broader industry has responded with a call for tighter regulatory oversight, as similar collapse scenarios raise concerns about consumer protection, especially in sectors that involve future payouts. The FCA’s guidance for existing providers includes a review of capital adequacy ratios and a reassessment of the under‐writing assumptions applied in these services. The episode is quantified as a sectoral warning, prompting insurers to re‑evaluate the deposit and reserve requirements for products that involve long‑term obligations to customers in order to prevent recurrence and protect consumer interests.