The Financial Services Compensation Scheme (FSCS) has assured that it will protect Gable Insurance’s policyholders in the UK if the company goes insolvent.
The FSCS said it is aware of the situation with Gable Insurance, which slipped into administration nearly two weeks ago.
According to the FSCS, it has not declared Gable in default. It noted that the insurer is in discussions with the regulator in its home country.
“We have been told by the special administrators PwC that the firm is currently still paying claims but we are monitoring the position,” FSCS said.
“FSCS protects the UK consumers of firms that passport in from Europe,” the compensation body added.
Gable, a European non-life insurer, entered into administration earlier this month, with PwC appointed by the Financial Market Authority (FMA) in Liechtenstein as special administrator.
In July, Gable stopped writing new business and later suspended trading on the London stock exchange in September.
The troubled insurer had executed a restructuring plan to meet the regulatory challenges due to Solvency II.
Gable chief executive William Dewsall previously said that the impact of Solvency II on his company has been “devastating.”
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