Gable Insurance and Their Impact on the UK Insurance Industry

 

If you work in the insurance industry, you have probably heard a lot about a company called Gable Insurance over the last few years. They have had a huge impact on the way insurance is written now and the amount of knowledge clients have about their insurance policies.

A few years ago, Gable Insurance flooded the insurance markets, particularly in the leisure and construction industries, with policies that were not only significantly lower in premium than the market norm, but also written on unrated paper, with them being unrated in the United Kingdom and instead running their business from Lichtenstein. This did not appear to bother most clients, who were so pleased with the financial savings on their policies that they did not question the paper on which it was written.

Flash forward to October 2016 and Gable Insurance has officially entered into Administration, which means that every broker who placed business through Gable Insurance now has a very big problem on their hands because they have clients who are currently insured through a financially unstable company and that in the event of any claims, they are not guaranteed to be paid out, which means that even though the client has saved on their premium, they may end up having to pay themselves in the eviction process.

Initially, there was no time limit on this, but it was recently announced back in November that all Gable Insurance policies would expire on the 16th of December 2016 and all cover would cease at midnight on this day, implying that all policies would need to be replaced by this date and with another insurer. This has left Insurance Brokers across the country scrambling to find rated Insurers that can cover the trades that Gable Insurance were covering and without a huge increase in premium, though clients will have to understand that the premium that they will pay will increase as the financial situation improves.

Author: RabnawazToor