As one of the most well-known names in the motor insurance market the news that Enterprise Insurance has been ordered to stop issuing policies has come as a bit of a shock, with the firm being a cemented name in the industry for many years .
According to many sources The Gibraltar Financial Services Commission (GFSC) has directed Gibraltar-based insurer Enterprise Insurance Company to immediately cease creating new business, with huge worry as to whether the provider can foot the bill for claims made.
The GFSC also announced that had also issued directions prohibiting Enterprise from making any payments unless authorised by the GFSC, one last mission to protect both the business and its customers.
Enterprise Insurance in liquidation
With these worries being rather justified the organisation has advised policyholders to contact their brokers and get the ball rolling to find a new providers. With not enough assets to support insurance claims liquidation is now underway.
Grant Thornton, who is overseeing the liquidation, stated:
“Insurance policies issued by Enterprise have not been cancelled or disclaimed but I am unable to currently pay any claims arising under such policies. It is also uncertain if the company’s assets will be sufficient to meet insurance claims in full.
“In these circumstances it is advisable for policy holders to contact their brokers to arrange alternative insurance cover
With an attempt to source additional funding and come out of administration it is looking very much likely that this firm will leave the industry indefinitely. Having admitted this in a statement to its customers Enterprise wrote that they were demonstrating a “significant deterioration in the company’s position and that Enterprise is insolvent”.