About 1,000 pubs, shops and other businesses in Ireland have been reportedly left in insurance limbo after UK-owned insurance provider Gable slipped into administration earlier this month.
This was recently revealed by the The Sunday Times,
which reported the Central Bank of Ireland as saying that policyholders “may be affected” by the appointment of PwC as special administrator at the troubled European insurer.
The bank will contact this week the brokers involved, telling them to update policyholders on developments, according to the publication. PwC will also get in touch with the brokers.
Citing industry sources, the report said that the risks underwritten by Gable in Ireland would be “tough to place” with other insurers due to a high incidence of claims.
“Pubs and shops are the types of businesses that others won’t want,” The Sunday Times
quoted an unnamed source as saying.
According to the report, Gable sold insurance in Ireland through a network of brokers to businesses that had struggled to get insurance from local providers.
The insurance policies remain in force, but PwC has not disclosed the status of any claims outstanding against them, The Sunday Times
Earlier this year, Gable suspended trading on the London stock exchange and ceased writing new business as it started executing restructuring plan to meet the regulatory challenges due to Solvency II.
“The impact of the introduction of Solvency II on small insurance companies such as Gable has been devastating,” Gable chief executive William Dewsall said in September 30 when he revealed lower half-year earnings attributable to the company.
MGA to help Gable brokers
Gable now in administration