Another day, another twist in the tale of what has become quite the saga surrounding NZ-based insurer CBL.
Less than a week after the Central Bank of Ireland ordered the insurer to stop writing new business in the country, it has now gained approval to appoint Kieran Wallace as provisional administrator for the European arm of the business, CBL Insurance Europe dac.
According to a report in The Independent, the regulator informed the court that it was concerned over the way in which the insurer’s business had been carried out and the fact that it had apparently not made the necessary provisions for debts. As such, it took action to “protect policyholders” – the firm has around 12,500 household policies in Ireland, as well as providing cover against insolvency on one of the country’s largest airline carriers’, Ryanair’s, travel insurance policies. The company also had the authority to write business in the UK, Belgium, France, Italy, Romania, Sweden, Spain and Denmark.
Existing policies will reportedly remain in force – but policyholders have been asked to arrange alternative cover as quickly as they can.
The move comes shortly after the parent company CBL had administrators appointed over the weekend.