Following last week’s collapse of Denmark-incorporated Qudos Insurance, which operates in the UK on a freedom-of-services basis, the non-life insurer has provided answers for impacted policyholders.
Publishing a Q&A on its website, the firm said customers’ insurance policies are still valid until the next renewal data or date of expiration/termination. It added that there are no changes to the handling of claims and that those with claims outstanding should contact their claims handling agents.
Meanwhile clients who have just received a renewal notice will not be able to renew with Qudos Insurance as it has ceased all renewal and does not offer renewal of existing policies.
“Please contact your agent for further instructions,” it advised.
The company, which is regulated by the Danish Financial Supervisory Authority and has been offering products within the European Union through agents and brokers, was snapped up by New Nordic Advisors in 2017 “with the vision and idea for Qudos Insurance to serve as an insurance platform for a Nordic insurance strategy.”
However, it explained that the turnaround process from its former business model “proved to be more comprehensive than anticipated and eventually led to the decision for Qudos to cease to underwrite new business.”
When the insurer’s solvent liquidation was announced, it was also revealed that its parent investment management company has entered into retrospective reinsurance treaties with legacy specialist DARAG.
In the UK, the Financial Services Compensation Scheme (FSCS) is keeping an eye on the developments.
“The firm is still paying claims and is currently of the view that it can meet all its obligations,” said the FSCS in a statement. “We are monitoring the situation along with the FCA (Financial Conduct Authority) and will give you an update once we have more information.”
