A sizable number of former Enterprise Insurance clients are still lacking cover a month after a regulator declared the Gibraltar-based insurer insolvent.
reported that one-third of the Enterprise customers are still without insurance, and the Solicitors Regulation Authority (SRA) said the firms are now on notice with individual action plans to secure new polices “as soon as possible.”
Crispin Passmore, SRA executive director of policy, told the news website that the regulator has been working closely with the affected firms to ensure that they will get cover and to keep clients aware of the situation.
“The good news is that, within a short space of time, two-thirds of firms have reported securing new cover, with most others well into the process of getting something in place,” Today’s Conveyancer
quoted Passmore as saying.
“We will continue to take a constructive approach with those who don’t have a new policy, but are being absolutely clear about their responsibilities and the need to move quickly,” he added.
Passmore said the SRA is looking at each firm on an individual basis and putting them on an action plan.
“If we do not see evidence of progress, we will then need to take further action,” he told Today’s Conveyancer.
On July 22, the Gibraltar Financial Services Commission ordered Enterprise to immediately cease writing new insurance business and prohibited the company from making any payments.
Enterprise said there has been a “significant deterioration” in the company’s financial position, with its shareholders having been unable to contribute additional capital.
subsidiary Wrightway Underwriting said it will refund outstanding premiums to 14,000 Enterprise clients.
According to the Today’s Conveyancer
, the UK Financial Services Compensation Scheme said that it will protect Enterprise policyholders in Britain if the SRA finds the company unable to meet the cost of claims made against it.
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