This type of administration is not an insolvency event, says SRA
The Solicitors Regulation Authority (SRA) has moved to soothe brokers’ and solicitors’ fears that Quinn is under-reserved.
The body, which represents solicitors across the UK, said members should stick with their Quinn Insurance policies.
Quinn holds €26m (£23m) in premium income for solicitors’ professional indemnity (PI) policies.
The authority said: “The SRA understands that this type of administration under Irish insurance legislation does not appear to amount to an insolvency event for the purposes of the solicitors’ indemnity insurance rules in England and Wales.
“Therefore, there is no requirement at this stage for firms insured with Quinn to seek replacement qualifying insurance. We shall continue to monitor the situation closely and shall advise the solicitors’ profession of any significant developments or change to our view.”
The Law Society backed up the decision by the SRA and the FSA not to expel Quinn as a qualifying insurer.
However, many brokers still have doubts about Quinn’s long-term stability.
UIB PI divisional director Simon Lovat said: “It seems that, as Quinn is domiciled in Ireland, the SRA is prepared to follow the Irish regulator’s rules … which are not as stringent as the UK rules.”