Owners in limbo after insurance cash halted
AN insurance firm has left horse owners in limbo over payouts after it was made to halt all payments by the Gibraltar Financial Services Commission (GFSC).
Elite, which is based in Gibraltar and worked with UK intermediary Equicover, had the sanctions imposed after its major reinsurer, New Zealand company CBL Insurance Ltd (CBL NZ), went into liquidation.
Some customers have been left owing vets thousands and say they have no clear indication of when payments will resume.
Eventer Kat Bentz had to claim for around £1,000 after her horse was diagnosed with navicular just before her policy ended.
“It’s frustrating as I’ll probably have to use a credit card to pay, and won’t be able to claim any interest. At the moment, we don’t have an end in sight,” she said.
“They were happy to take payments from me until the end of my policy, but it’s left me feeling like I wasn’t really insured.”
Freelance instructor Vikki Jenkins is waiting for £700 of an ongoing claim for treatment for her pony’s sacroiliac joint.
“My vets have been brilliant as they have other people in the same situation, but not everyone’s vets are so understanding,” she said.
“I just wish Elite had warned us sooner.”
She added that while the company is responding to emails, it had only been possible to talk
“to an answering machine”.
Elite announced it would not take on new business on 5 July 2017 and was later bought out by the Armour Group, which took over operational management
of the run-off. The company continued to honour claims until April, when the measures were imposed. Although Elite was a member of the Financial Services Compensation Scheme, customers cannot claim while the company is solvent.
“The situation is a result of a reinsurance arrangement with CBL NZ, which represents the majority of Elite’s assets. As a result, we have committed to a restricted payments protocol designed to ensure creditors as a whole are treated equitably,” a statement from Elite explained.
“This is a short-term situation and the directors continue to assess the situation regularly.
“We are engaged with the CBL interim liquidator and the GFSC to achieve a positive outcome for policyholders.”
A spokesman for the GFSC said it welcomed the initiative taken by Elite and would stay “in close contact” with the company.
“In addition, the GFSC will continue to monitor the situation and we remain engaged with the European Insurance and Occupational Pensions Authority, other EU regulators and the Reserve Bank of New Zealand to ensure policyholders are not unreasonably affected,” she said.
Penny Reid, director of intermediary Equicover who sold Elite’s policies, said they could not comment on Elite’s behalf and that queries should be raised with the company directly at eliteclaims@armourrisk.com.
“Equicover Limited is very disappointed with the current position and is hopeful a resolution can be achieved as soon as possible,” she added.