The troubled Danish provider says it is "disappointed" after Danish regulator refuses three-month extension to its recovery period forcing it into run-off.
The evolving PI landscape presents significant challenges not just for insureds, but their brokers and insurers as well, says Danny French of Aqueous Underwriting.
One Sure which, bought the rights to the Staveley Head brand in April, has agreed to manage the Policyplan run-off.
Stoke-on-Trent broker One Sure Insurance has bought the Wales broker which collapsed earlier this year.
The unrated Danish motor provider says it "strongly disagrees" with the order and adds it has continued its capital raising efforts as it seeks to comply with its solvency capital requirement.
However, its MGA Pukka is now live with fresh capacity following Gefion exit.
Bollington suspends trading with the unrated Danish insurer, which has been providing capacity for its MGA, Anjuna Underwriting, since 2017.
The sad fall of Staveley Head causes Siân Barton to pause and ask ‘when did this last happen to a broker?'
Staveley Head, which was mainly backed by unrated provider Gefion, advertised major composites on its website. Most of these confirmed only a handful of policies with the broker.
Danish provider says it "takes issue" with claims that it had prematurely ended its contract with Staveley Head, causing the broker to go into administration.
Ashley Peters and Martin Tyler also reorganised the collapsed firm and its share capital. As part of the reorganisation, it became a wholly-owned subsidiary of Gelert Group and a £2m dividend was paid to Gelert. Policy Plan also paid £8m to Gelert.
Move follows solvency issues at the broker’s main insurer as administrator initiates fire sale and says majority of Staveley Head's 85 staff have been made redundant.
The unrated provider was told to restate information in its annual report earlier this month.
Organisation says indicative levy for general insurance distribution is £23m and publishes Plan and Budget for the next financial year as total levy goes up by £87m.
The Danish regulator says the unrated provider has “serious liquidity problems” as Gefion says it is in progressed discussions with potential capacity providers.
Laurence Eastham and Siân Barton consider the top stories from the first full week back in the office in 2020, focusing on Gefion and the recent spate of run-off announcements.
Gefion has disagreed with the decision, as the regulator points to issues with one of the provider's reinsurance contracts.
The Danish provider has complied with the order from a regulator to have liquid assets of at least €5m by the end of 2019, after further investment from shareholders.
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The MGA moved away from the troubled unrated Danish provider earlier this year.
In July, the market was shocked by the departure of Amanda Blanc from Zurich after only nine months in the CEO EMEA role.
The struggling unrated Danish provider must have €5m in liquid assets by end of this month as watchdog points to “serious” problems.
Scheme has in total paid out £31m in premium refund compensation to 229,000 Alpha policyholders following the collapse of the unrated Danish insurer in May 2018.
Alpha was CRL's sole provider until it went bankrupt last year, and CRL has filed a document on Companies House which proposes the firm is wound up.