Quinn customers reassured over claims

Quinn Insurance customers were promised tonight their claims would be met despite the firm going into administration.

The Financial Regulator insisted the company is open for business and assured policyholders the appointment of a hands-on oversight team would leave them better protected.

But the watchdog said the insurance giant is now forbidden from writing any new business in its currently unprofitable UK division.

“Existing UK policyholders will not be affected by this decision as existing policies will remain valid,” the regulator added.

“Irish policyholders of Quinn Insurance Limited can continue to renew policies, carry out new business and make claims in the normal way.”

The Quinn Group has more than a million customers and almost a quarter of the private healthcare insurance market in Ireland.

The two main divisions hit by the High Court order are Quinn Healthcare and Quinn Direct, which provides motor, home and business policies.

Provisional administrators Paul McCann and Michael McAteer of Grant Thornton said they plan to place the business on a sound financial and commercial footing.

“The customers of the company are unaffected by our appointment and all valid claims will be met by the company,” they said.

But PIBA, the country’s largest group of independent brokers, called for finance minister Brian Lenihan to assure customers there is nothing to fear.

“The question that must be asked is, why has it come so close to the wire?” a spokesman added.

“Given that the industry is also paying millions annually to fund the regulator we must ensure that the new regime is more effective than heretofore and that we never again come so close to Armageddon.”

Meanwhile the Quinn Group said they would be working with the regulator and the administrators to resolve outstanding matters.

“The business continues to trade as a going concern with the objective of ensuring a financial restructuring to safeguard the overall business in the longer term,” the group said in a statement.

“All other group businesses are unaffected by this development. We will provide further updates as matters progress.”

Group founder Sean Quinn has written to every government minister today to complain about what he said is the "highly aggressive and unnecessary action" taken against Quinn Insurance.