QBE cuts ties with ill-fated specialist
Sterling Travel Insurance Services has gone into provisional liquidation. As a result QBE International Insurance (QBE) has terminated its underwriting agreement with the company.
International insurance and reinsurance group QBE originally entered into a contract to underwrite Sterling's policies in January 2000.
A statement issued to Insurance Times said: "QBE advises and confirms that from 28 February 2002 it terminated its underwriting agreement with Sterling. On 1 March 2002, following a declaration of insolvency in the presence of legal counsel, Sterling was placed into provisional liquidation."
On the same day, Tom Riddell and Paul Bateman of KPMG were appointed as the provisional liquidators by the High Court of Justice.
The statement added: "QBE has put in place resources and processes to ensure an orderly run-off of claims received in respect of all policies issued by Sterling up to and including 28 February 2002, subject to the terms of the respective policies.
"All key parties who have business interests with Sterling have been informed. Helpline response mechanisms are fully in place."
Both Sterling and QBE have now written to intermediaries and brokers, informing them of the agreement termination and promising to make arrangements for the future administration of claims.
QBE general manager of European company operations Paul Glen said:
"We have acted quickly to stabilise the situation and to provide an ongoing full service to holders of Sterling policies".
No one at Sterling was available for comment.
QBE employs over 6,000 staff worldwide and operates in more than 35 countries.
