news.bbc.co.uk/1/hi/northern_ireland/8595018.stm
NI based insurer Quinn in administration
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Erk! My step-daughter is insured by Quinn UK. I presume, on reading that, that she's ok as she's paid up front.
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"Existing UK policyholders will not be affected by this decision as existing policies will remain valid. Customers can make claims in the normal way," the regulator said.
"The effect of this action is to prevent Quinn Insurance Limited suffering further financial losses from its currently unprofitable UK business."
So they won't be receiving any money from new clients, but will be paying out claims from existing ones. On the face of it that sounds like a funny way of stopping further financial losses.
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"So they won't be receiving any money from new clients, but will be paying out claims from existing ones. On the face of it that sounds like a funny way of stopping further financial losses."
I thought that insurance companies had to have funds to meet claims available from day one rather than relying on future income to provide the funding. I presume the problem here is that existing assets are insufficient for existing claims so further business would be folly.
alfalfa
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Quinn have been wobbly for some time - I saw it suggested 18mths ago they were on the verge of going bust, but they hung on.
The holding group lent family members almost a billion Euros which they promptly lost through unfortunate investments so it had to be written off.
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Quinn Insurance- administration - Badwolf
