Flint Insurance

Flint Insurance

April 01, 2010 05:56 ET

Quinn Insurance Administration: Risky Strategy to Blame?

MIDDLESEX, UNITED KINGDOM--(Marketwire - April 1, 2010) - News about the administration of Quinn Insurance has sent shockwaves throughout the commercial insurance industry. The Irish based insurer is now currently being investigated by the Irish Financial Regulator in an attempt to protect existing UK policyholders. 

A spokesperson for Flint Insurance commented: "Quinn Insurance had a strategy to write high risk liability insurance in the UK using skills which they had developed in the Irish market. We were told that they could afford to write Insurance at highly competitive premiums, due to a much more proactive approach to claims settlement than is conventionally seen in the UK commercial liability market." 

Continued:

"Other UK insurers were obviously dismissive of these processes and raised questions about Quinn's ability to be able to write this business profitably and, therefore, constant rumors about their financial standing have followed them since they started trading in the UK."

With the recent High Court announcement that administrators have been placed into Quinn Insurance, time will tell whether this has been caused by the recession which has affected the economy on a massive and unprecedented scale or whether this business model was doomed to fail from the start.

Not since the fall of the independent Insurance have Commercial Policyholders had to consider whether they arrange alternative insurance. Commercial policyholders do not qualify for the Policyholders Protection Arrangement afforded to individual clients, and the majority of Quinn Insurance policies were written on a minimum and deposit basis, which means that cancellation refunds are not available. It is recommended that anyone who has an insurance policy with Quinn contacts their insurance broker immediately.

We await further announcements from the administrators and the FSA regulators for further guidance.

In the meantime as a specialist in commercial combined insurance and Liability Insurance Flint insurance are pleased to be in a position to offer various alternative insurers. For further information, please visit: www.flintinsurance.co.uk or call 0800 021 4501.

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