Zurich to help policyholders of collapsed insurer CBL Insurance Europe
Zurich is taking over 8,000 home policies from collapsed insurer CBL Insurance Europe.
It comes as CBL Insurance Europe’s ultimate parent has just revealed it is going into voluntary administration.
Zurich-owned MGA policies
Cover for the Irish home policies will be transferred from CBL Insurance Europe to Zurich upon renewal.
Zurich-owned MGA Wrightway Underwriting was distributing the CBL Insurance Europe underwritten Homeguard policies.
This forced Zurich to step in and give clarity to homeowners, according to the Sunday Times.
Meanwhile, the Law Society of Ireland has contacted solicitors that arranged professional indemnity through CBL Insurance Europe.
The Law Society has told members CBL Insurance Europe will honour existing policies.
CBL Insurance Europe has been ordered to stop writing new business by the Irish Central Bank, with the firm being told by regulators it needs to plug a $100m (NZ) reserve hole.
In more bad news for the business, latest developments include AM Best pulling its credit rating on CBL and downgrading its financial rating to the deeply trouble zone of ‘under regulatory supervisioin’.
The ultimate parent, CBL Corporation, has entered voluntary administration in a last ditch bid to protect itself and its assets.
According to New Zealand media outfit the Herald, managing director Peter Harris said the move ”means that everything from hereon operates under a protective umbrella of voluntary administration.”