The Financial Services Compensation Scheme (FSCS) has reported that that Gibraltar-based Prometheus Insurance Company Ltd (PICL) “failed” on 27 January 2021. The company was previously trading as Tradewise Insurance Company Ltd.
FSCS is working closely with the Administrator, Frederick (‘Freddie’) White of Grant Thornton, and the Gibraltar Financial Services Commission to understand the impact of PICL going into administration.
What policies could be affected?
PICL sold liability, bicycle and a range of motor insurance products including motor trade, haulage, private and commercial vehicle (taxi, black cab, and fleet). Policies were sold in the UK through their UK-based intermediary, Tradewise Insurance Services Ltd (TWIS), and a network of brokers.
“If you are unclear about whether your insurance policy was backed by PICL, contact the insurance broker who sold you the insurance policy for confirmation,” said FSCS.
FSCS said that it is stepping in to protect most of the motor insurance policies that Prometheus sold to individuals and small businesses in the UK, subject to their protection to protection rules and limits.
“We are in the process of identifying how many UK customers are affected by the failure of Prometheus Insurance,” said Jimmy Barber, Chief Operating Officer at FSCS.
“We are working closely with the Administrator to make sure that all eligible policyholders affected by the failure of Prometheus are protected.
“FSCS will protect the majority of UK-based customers of Prometheus who are individuals or small businesses with an annual turnover of less than £1m. We want to reassure Prometheus’s UK customers that their insurance remains in force, and we also want them to be aware that we will pay claims in the three months before their policies are cancelled,” he said.
Policyholders should check the FSCS website for updates at www.fscs.org.uk/Prometheus.