Wednesday, April 21, 2010

Quinn Direct Insurance In Administration

The insurance company Quinn Direct were placed in to administration from 31st March 2010 and were forced to stop writing any new business in the UK. Quinn Direct, an Irish insurer who entered the UK market just a few years ago, have been growing substancially through their cut throat rating in the young driver car insurance market and public and contractors liability arena.

Ever since they arrived they have been shrouded in controversy, at the end of 2008 the company were fined nearly £3 million, and company director Sean Quinn himself was fined 200,000 euros for making unauthorised loans.

GJT Hodgson Insurance Services, business development officer Gary Hodgson commented, "We have seen this coming for a long time. In the motor market they have been charging out unsustainable low premiums and in the liability market they have been undercutting their rivals without any real underwriting involved. It was only a matter of time before they had to start to pay out for large injury claims and it looks like now they don't have the financial backing to cope with it. We have never used Quinn Direct at Hodgson Insurance mainly because of the concerns we had about the way they dealt with things and we regularly advised customers against using them, but when customers are being told Quinn Direct can offer you a policy half the price of yours they cant not take it up. Unfortunately those customers have now got to hope the company don't go bust or they will lose all the money they have put with them and claims may not be fully settled."

From today, the regulators have told Quinn Direct that they may start providing car insurance cover for provisional licence holders, but our advice to you would be to steer well clear, no matter how cheap they look, you usually get what you pay for. Use a respectable insurance company or you may find yourself in financial problems !!!!!

1 comment:

micheal clark said...
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