International Underwriters Ltd has reportedly decided against entering the motor insurance market in Ireland.
According to reports by The Irish Times
, the global insurer has turned away from the move as it looks to avoid paying part of the possible €95 million bill linked to settling claims from collapsed insurer Setanta Insurance, which folded in 2014.
The report outlines that in order to write motor insurance in the country, AmTrust
would need to join the Motor Insurers Bureau of Ireland, established back in 1955, to meet claims costs from uninsured drivers or unidentified vehicles.
However, the publication states that it has learned that AmTrust
actually joined the MIBI back in 2015 only to resign its membership recently without actually writing any motor insurance cover. The publication reports that its decision to quit is linked to concerns over contributing to the costs of settling around 1,700 claims linked to the liquidation of Setanta.
Over a two year period from 2013-2014, MIBI paid out more than €110 million connected to uninsured drivers and untraced cars – with the costs shared among its members. However, it could now be saddled with meeting the cost of claims arising from Setanta’s collapse – with the company boasting around 75,000 members across Ireland.
The matter has been taken to appeal at the Supreme Court, with the MIBI suggesting the bill should be met by the Insurance Compensation Fund which is designed to facilitate payments in the event of liquidation. It stepped in when Quinn Insurance went into administration back in 2010.
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