Reported the Insurance Times on Wednesday 12th October 2016.
PwC are now in control of the company as special administrators, this means they have taken control of the company from the management and the board.
In a note sent out to clients, PwC Switzerland said: “In order to protect the interests of Gable Insurance AG’s policy holders, the Liechtenstein Financial Market Authority (FMA) transferred the powers of the Company’s bodies under applicable law and bylaws to PricewaterhouseCoopers AG, Switzerland (the “Special Administrator”).”
The note goes onto to say: “Furthermore, the Liechtenstein Financial Market Authority (FMA) issued on 7 September 2016 a formal order (Verfügung) against Gable Insurance AG, prohibiting the conclusion of new insurance contracts and the transfer of assets to affiliated entities and persons.
“In its formal order, the FMA clarified that the statutory term “new insurance contracts” also covers renewals and extensions.”
Brokers are being advised to replace policies with new cover immediately.
NDML have highlighted previously the risks involved when using unrated insurers, whilst initially the premiums appear to be more competitive in the long run this isn’t sustainable and the consequences are what we have seen with Gable, and this isn’t a situation we wish our customers to be in.
Further information on unrated and unregulated insurers can be found here