Policyholders advised to shop around by brokers’ association

CONCERNED Quinn Insurance policyholders have been advised – by one industry watchdog – to shop around, after the company went into administration yesterday.

Although the company’s new management – Michael McAteer and Paul McCann of Grant Thornton have been appointed administrators for Quinn Direct and Quinn Healthcare – and the Financial Regulator moved quickly to clarify that existing policyholders will not be adversely affected by yesterday’s developments; one of the insurance industry’s leading representative bodies has accentuated the alternatives available to customers.

The Irish Brokers’ Association (IBA) said that while yesterday was “a very sad day for the industry”, “there is choice out there”.

According to IBA chief executive, Ciaran Phelan: “Our brokers have been inundated with inquiries from clients. Some are worried about claim payments while others are concerned about whether or not to renew with Quinn.”

Paul Carty, the association’s president, added that the advice from Quinn Insurance’s administrators that all valid claims will be paid “is an important comfort for customers of Quinn”.

“Our advice to existing Quinn customers, if they are concerned, would be to look at the choices that are available on the market,” he added.

Although the IBA paid tribute to the regulator’s swift action in applying to the High Court for an administrator to be appointed, it also suggested there were warning signs when – in 2008 – Sean Quinn had to stand down as chairman and director of the company after the business was hit with a record fine of €3.25 million (with Mr Quinn paying €200,000) over its granting of a €288m loan to a related company, a move which breached regulations.

On December 5, 2008 it was anticipated at the highest level in the industry that Quinn Insurance was going to be put into administration that weekend, Mr Carty added.