Another motor insurance company goes bust - 14,000 Irish policyholders

How many policyholders did Setanta have?

14k doesn't seem like a huge number, less than 1% of the market... So the cost will (hopefully) be a lot less than Setanta?
 
Brendan Burgess said:
But sure isn't that what the taxpayer is for?

To pay the claims of people whose cheap insurance policies have become worthless.
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You're hardly blaming the policyholders are you?! Sure they may not even know who their policy was underwritten by.
 
I was burned by the Setanta crash and by sheer luck I escaped being burned again this time as I've taken out insurance via Wrightway previously.

That this can happen twice is shameful ... there's no protection for the customer. And we'll all be hit with a second/increased levy to cover this.

With all the regulations (both Irish & European) what good are they when the customer ends up out of pocket and unisured.

I can't believe it has happened for a second time. Is there anyone in authority keeping an eye on the ball?
 
I was insured by Wrightway years ago before switching to No Nonsense. Hopefully too many customers weren't crucified by this.
 
... and there was the issue with RSA, one of the countries biggest insurers, which needed a massive lifeline from the UK side after the Irish arm underestimated reserves, leaving a massive hole in the balance sheet. That cost the group a whopping €423 million between 2013 -15. See http://www.irishtimes.com/business/...t-to-irish-insurance-unit-tops-500m-1.2636839 Imagine the public having to pick up that tab? There is surely a need for some kind of stand-alone regulator to monitor how insurers are underwriting business financially to protect the public purse, and ensure punters aren't being ripped off.
 


Blaming might be the wrong word. But they took out cheap insurance. I don't see why the rest of us should compensate them. If you take out cheap insurance with a company you never heard of, then tough. You should pay the claims yourself.

Brendan
 
Brendan,

Wrightway insurance are not a chain of insurance brokers but an underwriting agency wholly owned by Zurich Insurance.

I also think it's about time the Central Bank take responsibility for theses insurance companies allowed to transact business in Ireland. They are meant to regulate the insurance industry in Ireland yet allow insurance companies passport into Ireland exposing Irish motorists ie Senanta Insurance (which was owned by 4 Irish insurance executives) and now Enterprise.
 

Setanta was regulated in Malta I think and Enterprise in Gibralter. Due to European rules there is very little the CBI can do to stop them operating in Ireland. They can only ask questions and try put pressure on other regulators to stop these rogue companies.

Gibralter have a new regulater which is implementing stronger rules so the situation should improve but not before more go I solvent
 
Great,I'm abroad on holiday with an uninsured car sitting on my driveway.
I got my insurance through Brittons.
 

Sorry Brendan but blaming seems to be exactly the correct word...

Interesting attitude; does it apply only to insurance or to other products and services as well?

If a few thousand people got poisoned by an own brand food product in one of the major discounters, and required an expensive treatment, would that be another case of "tough, pay for it yourself"?

And if the policy wasn't one of the cheapest, but inertia or whatever kept them with their broker, does that somehow distinguish some of their punters from others? Do we end up in a "you were just unlucky Johnny so you can have your claim covered, but Mick you went with the cheapest policy you scoundrel, so tough cheese pal" situation?

As Rich says above, does the snobbish attitude on this issue extend to mortgage interest - if a new provider comes in and attracts a load of business with a 1.75% interest rate, only for it all to blow up and require a bail out later, would you suggest the customers attracted by price in a regulated market should pay for the regulatory failures?
 
What an attitude Brendan. Surely the point of a regulator is to ensure the viability of companies operating in the market. I fail to see why this would be the responsibility of customers. Even the mission statement of the regulator (Central Bank of Ireland) is “Protecting consumers through effective supervision that supports the sustainability of the insurance sector”. By all means I can see where customers could expect some differences between insurance companies based on the premiums they pay, such as the cover provided and the ease of claiming in the event of an accident, but as to the eventuality where the company goes bust - that is 100% under the responsibility of the licence grantor, not the customers imho. If you want to blame anyone here blame the Central Bank of Ireland.
 
I wouldn't dream of taking out insurance, or buying any other financial or other service, from an obscure outfit registered and regulated in somewhere like Gibraltar.

If a group of Irish people ended up out of pocket after relying on a Gibraltar-based accountant or solicitor, they'd be told "caveat emptor" if they sought a State bailout.
 
I guess the big difference from my perspective is that solicitors and accountants are self-regulating and insurance company regulation is a matter for the independent Central Bank. I'd have to say their score as an effective regulator is a big fat negative number right now, as it has been in the past.
 
Ceist Beag said:
If you want to blame anyone here blame the Central Bank of Ireland.
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Why would you blame the Central Bank? They had nothing to do with the regulation of this company.

Enterprise was selling motor insurance in a number of European countries, including Ireland, on a freedom of services basis. Its financial position was not supervised by the Central Bank and the Central Bank has no role in that regard.

It was reported in the press over the weekend that the Central Bank specifically asked the Gibraltar regulator earlier this year to review the Irish motor business of Gibraltar-based firms and followed up with a visit to the Gibraltar regulator earlier this month.
 
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