Quinn to re-enter UK insurance market
Quinn Insurance has been given permission for a limited re-entry into the UK insurance market following an announcement by the Irish Financial Regulator yesterday.
However, the relaxation of the regulator’s restrictions preventing Quinn from writing new business in the UK does not extend to solicitors’ professional indemnity insurance.
The regulator said that it would permit the Irish insurer to write motor insurance cover for learner drivers in the UK. It is understood that this is one of the more profitable areas of the company’s activities.
In its statement, the regulator said the decision had been made ‘after careful analysis of information provided by the administrators of Quinn Insurance Limited (QIL) in relation to important improvements in the company’s underwriting model and significant strengthening of its pricing structure’.
It said it had consulted closely with the UK’s Financial Services Authority before making the decision.
The financial regulator added that it ‘continues to work closely with the administrators of QIL in relation to their obligations to restore the company to a sound commercial and financial footing’.
A statement issued on behalf of Quinn said: ‘QIL is pleased to announce that, following a decision by the financial regulator today, it will be re-entering the UK insurance market.
‘QIL will recommence offering private motor insurance cover for provisional licence holders in the United Kingdom, including Northern Ireland. While this is a limited re-entry to the UK market, it is an important development for QIL as the UK market has been a core part of the business for the past five years.
‘The company’s business model of efficient operations, pro-active claims approach and a targeted approach to selective customer segments offers the opportunity of sustainable profitability.
‘The company would like to acknowledge the support of all stakeholders for their efforts over recent weeks as we seek to secure the future of our UK business.’
See the Law Society's website for the latest advice on Quinn.
Comments
You get what you pay for...........
When I was young, I was told you get what you pay for and nothing could be more true than in the insurance world.
However, the test of that adage is only applicable when there is either a claim or an event like this takes place.
The comparison to a solicitors work is pertinent here.
If one firm charged £1,000 for a conveyance but a firm down the road charged £200 for what essentially appeared to be the same thing where would you spend your money? However, what are you getting for your money? The firm charging £1,000 would surely argue that they were supplying a superior product and it was staffed with qualified solicitors who were undertaking the work
The cheapskate in many of us though would pay the £200 and keep our fingers crossed.
Well, the same applies to insurance.
"Like the bankers, brokers let the scent of income cloud their reason" but surely thee solicitors are more than culpable here because if anybody tried to sell me anything but also produced the quote with a buyer beware letter, I would be asking questions. However, it seems that a third of the profession didn't ask that question and yet are now trying to round on their brokers or the SRA/Law Society.
Lets face it, PII insurance has become a tradeable commodity where lowest price wins. However, one of the most important and expensive purchases of the year (i.e. the one that will keep you in business) is treated with something akin to contempt by the majority of the profession and insufficient effort is put in to the renewal process.
Not true - as an SP the ONLY
Not true - as an SP the ONLY quote I had last Sept was from Quinn, despite me sending the renewal forms in July.
Then 4 days after accepting their quote (with only 2 days left before 30 Sep) I got a quote from another insurer, quoting about 20% higher.
I probably would have gone with this one, but by then had accepted Quinn...
Pressure
Like the previous correspondent, I also only had a quote from Quinn, one day before the end of the month, and had two hours to accept. I had no choice at that time, the only alternative, if it can be called that, being to go into the ARP. The market for small firms/SP's has become warped.
Can't wait for this years merry go round.
I would suggest that those
I would suggest that those PII brokers who sold Quinn policies and the SRA must take some responsibility for their actions in bringing, and then allowing, an insurer who had many questions asked of and about them, to continue underwriting our policies over the past few years. Surely PII brokers and the SRA look at such things as long term, financial stability, past record and underwriting background in this, and in fact any, area of business of all the insurers? If not, then it looks to me as though some PII brokers (those that deal with Quinn) just don’t care what they sell to us, they are just in it for the money short term and we are regulated by a regulator who acts in the short term and in their own interests, not in the long term interests of those that might suffer the consequences of their (in)actions.
As the great writer and reformer John Ruskin said “It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money -that's all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.”
Yes they're in it for the
Yes they're in it for the money, no they won't take any responsibility.