Motorists hit by new insurance crisis as Enterprise Insurance collapses
Published 22/07/2016 | 17:25
Motorists have been hit by a new insurance crisis after another insurer regulated outside the country collapsed.
Enterprise Insurance, which is regulated in Gibraltar, is being wound up.
The insurer has 14,000 policyholders here, selling its insurance through brokers.
It is not known what the cost of the collapse will be for motorists here, but it is expected to run into the millions of euro.
Malta-regulated Setanta failed in 2014 leading to a legal dispute over who should pick up the cost for the 1,700 claims that could cost €95.2m to settle.
But ultimately the collapse of Setanta will be paid for by motorists here.
Now there are fears that another collapse of an insurer will end up putting new pressure on premiums.
Across all insurers premiums shot up by almost 40pc last year as the industry struggles with a number of issues.
The failure of Enterprise Insurance is likely to add to the pressure on premium rates.
The Central Bank of Ireland said it did not regulate Enterprise Insurance but was informed by officials in Gibraltar that the firm was being wound up.
Enterprise Insurance also had operations in other European countries.
The Central Bank said: “Motor insurance policyholders in Ireland, who bought insurance through the broker network, may be affected. Any policy holder who has concerns about their policy should contact their broker in the first instance.”
Policyholders with questions should contact the Gibraltar Financial Services Authority Commission on 00 350 200 40284, or email email@example.com.
Motorists affected also contact Enterprise on telephone number 00 350 200 50150.