Heard from a reliable contact that a leading UK insurer wrote to the FSA very recently complaining about Quinn
Pretty much along the lines that Quinn
Insurance are no longer independently financial strength rated after their 'low' Moody's Rating (their only rating) was pulled.
I understand the concern relates back to the collapse of the Independent Insurance Company, reference here http://www.guardian.co.uk/business/2007/oct/24/insurance.crime
Basically, the leading UK insurer informed the FSA that if Quinn
Insurance continue to be allowed operate without rating, then if Quinn
collapsed, they (the other UK insurer) will not part-take in market collective activity to rescue Quinn
The FSA can't take much action as Quinn
domiciled in Ireland. So the Irish Regulator had a recent scheduled annual audit planned for Quinn
Insurance. The Regulators auditing staff arrived at the Cavan HQ as was pre-arranged with Quinn
Insurance. Allegedy, the Irish Regulator was 'escorted' off the premises and refused permission to conduct an independent audit !
It has been kept from the media but all the necessary circles are fully aware of this stand-off.
Now the question needs to be asked - why is an insurer operating in Ireland allowed act in this manner?
The UK insurer who referred Quinn
Insurance to the FSA is currently considering moving operations from the UK to either Switzerland or Ireland for tax reasons.
I can't believe the Irish Regulators are allowing this behaviour. More importantly, if Quinn
goes tits up, if the Irish Regulator is proven to have been negligent and relaxed in addressing the problems in the past, other insurers within the state will refuse to assist in the clean-up exercise.
The entire insurance industry is talking about this event and not a single sign of action from the Regulator or the Irish Insurance Federation.