If you are involved in any way with the Insurance Industry then over the last few years you would have heard an incredible amount regarding a company called Gable Insurance and they have had a profound impact on both the way that Insurance is written now and also the amount of knowledge that the client themselves have of their Insurance policies.
A few years ago the Insurance markets especially within both the Leisure and Construction Industries were flooded by Gable Insurance writing policies that were both way below the market norm on premium but also written on unrated paper with them being unrated in the United Kingdom and instead having their business being run from Lichtenstein. This did not seem to faze most clients who were more than happy with the monetary saving on their policies that they did not question the paper on which it was being written.
Flash forward to October 2016 and Gable Insurance has officially entered into Administration meaning that every broker that placed business through Gable Insurance now has a very big problem on their hands in that they have clients that are currently insured via a financially unstable company and that in the event of any claims they are not assured to be paid out meaning that although the client has saved on their premium they may end up having to pay themselves in the event of any claims being made against them leaving the, more out of pocket than they would have been if their insurance had been on rated and secure paper.
At first this was not something that had a time limit on but it was recently announced back in November that all policies that were with Gable Insurance would expire on the 16th December 2016 and all cover would cease at midnight on this day meaning that all policies would need to be replaced by this date and with another Insurer. This has left Insurance Brokers around the country scrambling to find rated Insurers that can cover the trades that Gable Insurance were covering and without a huge increase in the premium, although due to the fact that the main reason Gable Insurance were so bad for the Industry was that they were writing business at a premium that should never have been done so clients are going to have to understand that the premium that they will pay will increase as the financial security on the insurance policy increases.