The insurer, with over 51,000 customers in Ireland, has been declared bankrupt
Danish insurer Qudos, which fell into liquidation last month, has been declared bankrupt by a court in Denmark.
As a result, the danish Guarantee Fund will now be expected to cover the costs of outstanding claims for the company.
Qudos has over 51,000 customers in Ireland, Ireland’s Insurance Compensation Fund could have been forced to pay the outstanding claims of the Irish holders of policies from Qudos, if the insurer had not been declared bankrupt before the end of this year.
Its products were sold through the Irish agent for Qudos Insurance, Patrona Underwriting.
Patrona said the news of the bankruptcy is a welcome one for Irish customers awaiting the settlement of their claims.
Tony Wright, Managing Director of Patrona, said the move would mean that Irish policy-holders with outstanding claims would now receive 100% of what is owed to them, whereas if liability had fallen on the Irish Insurance Compensation Fund, not all claims would have been settled in full.
Insurance Ireland also welcomed the bankruptcy, stating that customers could now get clarity over how and when their claims will be settled by the Danish Guarantee Fund.