Lemma has 28 days to find a new insurer
The Solicitors Regulation Authority (SRA) today stressed it was not their responsibility to police failed Gibraltar-based insurer Lemma Europe Insurance Company.
Lemma, which was the 10th highest ranked insurer of solicitors’ professional indemnity in 2010 with £6.24m, was today at the centre of winding-up proceedings in Gibraltar’s Supreme Court.
It has frozen claims payments, leaving brokers and policyholders in the UK to pick up the pieces with the Financial Services Compensation Scheme.
An SRA spokesman stressed it was up to brokers who they placed their insurance with, and it was not the responsibility of the body, to police insurers such as Lemma.
The spokesman said only one policy was currently placed outstanding with Lemma.
The spokesman said: “It is for the FSA or the FSC (Financial Services Commission in Gibraltar). We had one form with insurance for Lemma. They have 28 days to find another insurer.”
An FSA spokesman said that passporting rules for European insurers came under the remit of the European authorities.
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