One defunct business insurance provider in Ireland will be transferring the responsibility for a large majority of its outstanding claims to Anglo Irish Bank.
Despite the move on the bank’s part to absorb failed commercial insurance provider Quinn Insurance’s outstanding claims, a substantial portion of some of the most expensive claims will be left as the responsibility of the administrators of the insurer.
The revelation came after the administrators of Quinn Insurance recently announced that the deal between Anglo and Liberty was the bid that was preferred by the insurer. The transfer is currently pending regulatory approval.
Only 30 of the 1,600 job positions at Quinn Insurance Limited will be lost under the new agreement. Staff will transfer to a new firm led by executives from Liberty, a US based business liability insurance giant.
While the deal’s details are still being finalised, rumours indicate that the new firm has its eyes set on taking over the core business of QIL in its entirety.
This means that the new firm will honour all future and outstanding claims in crucial areas such as home insurance and car insurance. However the understanding is that Liberty and Anglo are seeking to limit their exposure to certain areas that have been discontinued such as European liability and professional indemnity insurance for solicitors.
The new plan leaves these outstanding claims under Grant Thorton, the administrators of Quinn Insurance. Grant Thorton will additionally be left with assets in order to make payments on such claims.
If these assets prove to be insufficient then levies will be placed upon all general insurance policies in order to create a fund designed to provide insurance compensation.
The likelihood of the administrators being left with a substantial amount of claims is high. This is because the professional indemnity insurance area has been one of the largest source of losses for the business.