Customers of now4cover are transferred to another Gibraltar-based insurer
The FSCS has transferred now4cover home policies to Gibraltarian insurer Red Sands.
A total of 13,500 now4cover customers were left without cover following the fall of previous carrier LAMP in May. LAMP was also a Gibraltarian insurer.
In an FSCS update, it revealed that all policies were disclaimed last Thursday. The FSCS worked with now4cover and the LAMP liquidator to move as many policies as possible, where the policyholder chose to be included.
But it revealed some policies were not transferred. Red Sands took on 8,365 policies from 20 July 2019.
The Insurance Times Gibraltar Report published earlier this year revealed Red Sands had a solvency coverage ratio of 142%.
LAMP had held a seemingly very healthy solvency coverage ratio of 237%, but there were other problems that led to insurer to file for liquidation.
Red Sands recorded a combined operating ratio of 97% last year, compared to LAMP’s 145%, and its expense ratio was at 36%, compared to LAMP’s 125%.
Red Sands has a loss ratio of 61%, while LAMP’s was 19%.
For policyholders who were not transferred, the FSCS said they will be entitled to a pro-rata return of premium on the unused period of their policy.
Other policies
The FSCS update also gave an update on other LAMP written policies.
For dental implant policies, these were also disclaimed on Thursday. These policyholders disclaimed will be entitled to a pro-rata return of premium on the unused period of their policy.
For all other LAMP policies, the FSCS said it is working with the liquidator to arrange transfer of cover, but warned it is not yet known whether the transfers will be possible.
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