Key Post Quinn Insurance in Administration - FAQ

Brendan Burgess

Brendan Burgess

Founder
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Are my investments in Quinn Life in trouble?
No. The Administrator was appointed to the general insurance company and not the life companies.

It may be worth moving them anyway. But don't move if your funds are currently worth less than you invested. This is dealt with in detail here.

As a precaution, you should stop making any further contributions until the situation becomes clearer.

Is my car insurance and health insurance still valid?
Yes. It's likely that the appointment of the administrator won't affect this. If it does affect this, then it's likely that the government/tax payer will pick up the deficit.

I pay my insurance by monthly direct debit?
You should continue to pay the direct debits or else you will lose your insurance cover.

I am just about to renew my insurance with Quinn
Don't. Go somewhere else.

I have a claim outstanding against someone insured by Quinn
It's unlikely that you will be affected. There isn't anything you can do about it now.

How much will this cost the taxpayer?
It's hard to know. It appears to have a deficit of €200 million. This is not large in the overall context of the figures. It's likely that it will be recouped over time from an insurance levy.

Update: I am not sure if Quinn Insurance Limited is in deficit. It may be solvent but just have less reserves than required by the Financial Regulator. So it could be sold to someone else who would invest fresh capital in it.
 
From the Financial Regulator's [broken link removed]
(Emphasis of "As of now" provided by punter)

Consumer Questions and Answers

Am I still covered/is my insurance policy still valid?
As of now it’s business as usual and your policy is valid.

Should I continue to pay my premiums to Quinn?
In order to continue to have cover you need to continue to make premium payments.

I have a claim outstanding with Quinn Insurance Limited, will it be paid?
As of now it’s business as usual and outstanding claims will be treated in the usual manner.

Can I make a claim on my insurance policy?
As of now it’s business as usual so the claims procedure has not changed.

I have a life policy, is it affected?
Quinn Life business is a separate entity. Life products are not affected and are still subject to the terms and conditions under which you purchased them.
Any updates will be available on this website.
The Financial Regulator helpline is available at 1890 777777.
UK residents can call 00353 214800997.
 
Hi Callybags

It's a precaution. If I had my car insurance today with Quinn Direct, I would be a bit concerned. If I was about to renew, I would prefer to pay a bit more to another insurance company which was not in administration.
 
Isn't this the stuff bank runs are made of?
If no one renews, then Quinn will collapse (even more).
 
Re: Quinn Insuarnce in Administration - FAQ

Brendan, I'm somewhat aghast at your recommendations as they are likely to negatively impact on the viability of the company, over and above what may be the case (+1 MANTO).

The mis-management of the comapany is in no doubt however what you are recommending is akin to a run on a bank and is in stark contrast to your advice re: bank shares/deposits at the height of the financial crisis.
 
If I was with Quinn, there isn't much you can do anyway.
I would/will not renew or approach them New Business. The Irish regulator is no necessarily famous for being overly cautious so a statement like this:
"The regulator, counsel said, had concerns about the company's ability to meet its liabilities to policy holders"
just isn't necessarily instilling confidence.

Nothing to worry for your Life Insurance.
 
Isn't this the stuff bank runs are made of?
If no one renews, then Quinn will collapse (even more).
Click to expand...
Howitzer said:
what you are recommending is akin to a run on a bank and is in stark contrast to your advice re: bank shares/deposits at the height of the financial crisis.
Click to expand...

There is no comparison at all to a run on the bank.

A bank is dependent on deposits to lend out its borrowers. If everyone withdraws their money at the same time, the bank will run out of cash.

An insurance company's cash flow is completely different. They should not be dependent on renewals and new business for their cash flow. They should be able to pay all outstanding claims from their assets and investments.
 
One of the Administrators, Paul McCann was on the News at One saying that customers are unaffected and can continue to renew safely.

I would prefer to have my insurance with a company which is inherently solvent and is not under court protection. If I had a choice, that is what I would do. I simply would not renew with Quinn Direct. I would go elsewhere.

Brendan
 
Brendan said:
One of the Administrators, Paul McCann was on the News at One saying that customers are unaffected and can continue to renew safely.

I would prefer to have my insurance with a company which is inherently solvent and is not under court protection. If I had a choice, that is what I would do. I simply would not renew with Quinn Direct. I would go elsewhere.

Brendan
Click to expand...

I can see other Insurance Companies putting up the premiums for anyone trying to transfer to new company in the next month.

I am due to renew late April- I rather renew with them for excellent past service.
 
Brendan said:
There is no comparison at all to a run on the bank.

A bank is dependent on deposits to lend out its borrowers. If everyone withdraws their money at the same time, the bank will run out of cash.

An insurance company's cash flow is completely different. They should not be dependent on renewals and new business for their cash flow. They should be able to pay all outstanding claims from their assets and investments.
Click to expand...
True, from a customers point of view there is no such thing as a run on an Insurance company, but the ultimate outcome is the same. If an Insurance company has no new cutomers it will eventually cease to exist.

Quinn Life is a sperate entity. Again, once all units have been transfered from it's funds to those of competitors it will eventually ceases to exist.

However, as mercman said, jumping from the frying pan is rarely the best course of action.

For what it's worth I'd agree with the practicalities of your advice but don't see how you can give that advice given the advice you gave previously, on Irish TV, with regards to the Irish banks.

I own no shares in FBD (+8.7%) or ILP (-1.7%), the 2 companies listed on the ISEQ which would be most likely to benefit from a collapse in the Quinn Life and Insurance businesses.
 
Brendan said:
There is no comparison at all to a run on the bank.

A bank is dependent on deposits to lend out its borrowers. If everyone withdraws their money at the same time, the bank will run out of cash.
Click to expand...

On the other hand, with insurance companies, the most you can lose is your premium. With banks, you could lose your life savings.
 
canicemcavoy said:
with insurance companies, the most you can lose is your premium. With banks, you could lose your life savings.
Click to expand...

I have both car and house insurance with Quinn until next August. I have never had any claims, but god forbid, would hope to think that if i do have a claim before then, that Quinn would be able to pay up?
 
Howitzer said:
True, from a customers point of view there is no such thing as a run on an Insurance company, but the ultimate outcome is the same. If an Insurance company has no new cutomers it will eventually cease to exist.
...

For what it's worth I'd agree with the practicalities of your advice but don't see how you can give that advice given the advice you gave previously, on Irish TV, with regards to the Irish banks.
Click to expand...

It makes very little difference to anyone other than the owners of Quinn Insurance, if it ceases to exist.

If there is a run on a solvent bank, it could cause it to cease to exist with the result that the depositors would be unable to get their money.

It is a separate issue. If you want to tease it out further, could I suggest that you start a separate thread. This is about Quinn Insurance.
 
Doesn't Quinn insurance mind that Askaboutmoney is advising their customers to not renew with them, and also to stop making contributions to any investments with Quinn life "As a precaution"?

I'd be furious if it were my company.
 
Re: Quinn Group in Administration - FAQ

Brendan said:
One of the Administrators, Paul McCann was on the News at One saying that customers are unaffected and can continue to renew safely.

I would prefer to have my insurance with a company which is inherently solvent and is not under court protection. If I had a choice, that is what I would do. I simply would not renew with Quinn Direct. I would go elsewhere.

Brendan
Click to expand...

Brave statement for the administrator to make on day one of his appointment. Brendan, I share your concerns on the issue on solvency as Mr McCann and Mr McAteer are well known insolvency practitioners. If the company are or become insolvent what would happen to all of the premiums paid?

I guess it would mean that people would have to take a hit and get insurance elsewhere ie a double hit.
 
umop3p!sdn said:
Doesn't Quinn insurance mind that Askaboutmoney is advising their customers to not renew with them, and also to stop making contributions to any investments with Quinn life "As a precaution"?

I'd be furious if it were my company.
Click to expand...

I am sure that they don't like it. When Sean Quinn was fined by the Financial Regulator in 2008, I stopped recommending Quinn Life

As a consumer website, it is fair to recount the facts and make recommendations based on them. Others have suggested that there is no problem with either Quinn Insurance or Quinn Life. That is their opinion - I don't agree. When it comes to insurance or investment, the reputation and solvency of the company are critical.

Brendan
 
I agree with Brendan. Reputation is a key element in the choice of an insurance company. I moved from Quinn Healthcare to Aviva in 2008 because of this very issue.
 
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