Fianna Fáil Spokesperson on Finance, Michael McGrath TD has expressed concern over the latest news that Qudos Insurance, a Danish underwriter, has gone into liquidation leaving up to 50,000 customers in the lurch.
Commenting, Deputy McGrath said “With the failure of Qudos, the immediate concern is outstanding claims and whether they will still be paid out from the liquidation process. At this point we do not know the exposure to the Irish market and I call on the Minister for Finance, the Central Bank and the liquidator to provide clarity in this respect as soon as possible.
“The Central Bank has urged customers to check their insurance and ‘strongly recommends’ current costumers to arrange alternative insurance cover. Otherwise, the reality is that motorists face the prospect of having no insurance policy at all in place.
“The failure of Qudos once again calls into question the passporting rules in the European Union. Sadly we have been here before with the failures of Setanta and Enterprise Insurance which were both regulated in other EU jurisdictions. In the case of Setanta, which went into liquidation back in 2014, claimants have only recently seen light at the end of the tunnel.
“Clearly urgent steps need to be taken at a European level to ensure that customers are fully protected. A fully functioning European insurance market is crucial for customers to get affordable and fair insurance cover but the required regulatory mechanisms need to be put in place to protect customers and claimants.
“When Qudos or Setanta or any other insurance company goes into liquidation, it is Irish customers who end up footing the bill. One must ask: why there is no such mechanism at a European level?
“Right now, in the case of Qudos, Minister Donohoe needs to reassure customers and claimants here. We need to know exactly what the exposure here is in Ireland. How many customers are affected and how many outstanding claims are there for Irish claimants? These are key questions that need answering and I will be seeking those answers in the coming days”, concluded McGrath.