I propose to take Questions Nos. 77 to 79, inclusive, together.
The Central Bank of Ireland announced on 28 November that it had received information that Qudos Insurance A/S, a Denmark-based insurer, had entered into solvent liquidation. On 4 December, Qudos Insurance A/S announced that it is currently not paying insurance claims. The Central Bank is actively monitoring developments and is liaising regularly with its Danish counterparts, the supervisory authorities of other affected member states and EIOPA.
Qudos Insurance A/S is a Danish-based insurance firm, and is subject to prudential supervision by the Danish Financial Supervisory Authority. Qudos Insurance A/S was selling non-life insurance policies, (mainly motor and home policies), in Ireland through the broker network on a freedom of services basis.
It is understood that there are approximately 50,000 policyholders, in Ireland that have been impacted by the developments with Qudos. Patrona Underwriting has issued a statement saying that policies remain valid and in force until their natural expiry date, however given the current Qudos position and in line with Central Bank recommendations they have provided brokers with options to replace all insurance covers with other providers at no extra cost to consumers. Qudos Insurance A/S has published a Q&A for policyholders on its website - http://www.qudosinsurance.dk/qa/.
Early indications suggest that there are in the region of 1,400 claims outstanding in relation to Irish policyholders, but this is subject to confirmation.
I understand that the Danish liquidators are currently continuing their review of the company with a view to determining its underlying financial position. Once this exercise is concluded they will be in a better position to determine whether the company can pay existing claims. It is expected that more information regarding this matter should be available within the next two weeks.
It should be noted that my officials have been in contact with the Danish Finance Ministry, who advise on the basis of information they have received from the Danish Financial Supervisory Authority, that as the company is in solvent liquidation, claims will be met. However, the Ministry also indicated that if ultimately Qudos is placed into bankruptcy, and this happens after 1 January 2019, that the Danish Insurance Guarantee Scheme will not be liable to meet these claims due to a legislative change in May 2018. In such a situation claimants may instead be eligible for cover from the Irish Insurance Compensation Fund (ICF), subject to its terms and conditions and the particular circumstances of the case. In the case of third-party motor insurance claims, 100% of the cost of a claim may be available in line with the changes made to the Insurance (Amendment) Act 2018. This will mean if used, an initial full pay-out from the Insurance Compensation Fund with a recoupment of 35% from the new Motor Insurers Insolvency Compensation Fund.