UK policyholders need guarantee before business opens
The UK Financial Services Authority (FSA) has demanded Ireland’s Department of Finance guarantee Quinn Insurance’s UK policyholders, as a condition of Quinn reopening business in the UK, the Irish Independent reports.
The FSA made clear it needs commitments that British customers would not rank behind Irish customers.
Ireland’s Financial Regulator said Quinn’s administrators will not be allowed to continue to trade the company as a going concern unless they can bring its solvency ratios into line in a "reasonable timeframe".
Underpricing fails solvency test
Quinn has been failing to meet the regulator's solvency tests since 2008, a situation criticised by other insurers.
A snapshot of the market carried out by the Irish Independent shows that Quinn is still cheaper than its peers across a number of lines -- pricing that competitors say is enabled by Quinn's persistent breaches of solvency regulations.
The insurer's administrators have not made changes to Quinn's pricing mechanisms.