FSA insists Quinn has the resources to pay on its claims
Brokers are putting pressure on the FSA to order a remarketing of all Quinn’s solicitors’ professional indemnity policies.
The FSA is so far sticking by its guns, in tandem with the Irish financial regulator, insisting that Quinn has enough reserves to pay out on its claims.
But Lockton Risk Solutions executive chairman Neil Nimmo said that it was in the public interest to protect solicitors, as the risks were long-tail and Quinn could have nothing left in the pot a few years down the line.
“My recommendation is that, no matter what the solution, it should be with a credit worthy-rated insurer,” he said. “If that means polices have to be remarketed, so be it.”
A spokesman for the Solicitors Regulation Authority (SRA) said that it was acting in line with the FSA and that policyholders should sit tight.
However, UIB divisional director Simon Lovat said the SRA could use its powers to expel Quinn as a qualifying insurer in the UK.
“It is difficult to see how Quinn’s position can be in the best public interest,” he said.
Last year Quinn wrote £23.7m worth of professional indemnity business, around 10% of the market.
Brokers Prime Professions and PYV have both placed business with the insurer.
A PYV spokesman said: “PYV is a Lloyd’s broker and has access to and places business with a wide range of London market and Lloyd’s specialist insurers.
“As an independent broker, we are not tied to any one insurer and enjoy quality relationships with many insurers to help give our clients options going forward.
“We have been in contact with those clients of ours with Quinn policies.
“Our advice has been based upon the information provided by the Irish financial regulator and the SRA, and we will be keeping them informed of any new developments.”
No one from Prime Professions was available for comment.