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Dublin: 2°C Sunday 28 November 2021

Explainer: How will the liquidation of Qudos impact Irish customers?

The short answer is, we don’t know yet. But here’s what might happen.

Qudos Source: Qudos

LAST WEEK, THE Danish insurance company Qudos announced that it was in the process of going into liquidation.

Qudos Insurance is a private limited non-life insurance company incorporated in Denmark that has been offering insurance products within EU through agents and brokers. On 27 November, Qudos filed for liquidation (solvent).

Although it’s a Danish company, it offers products to consumers here through Patrona, which provides administrative services for Qudos.

About 50,000 Irish policyholders could be affected, and there are currently 1,570 claims ongoing with varying levels of Qudos involvement, according to Patrona.

So what is going to happen next for people whose house, car or health insurance is affected by the company’s liquidation?

What do I do if I’m insured by Qudos?

If “Qudos Insurance A/S” is stated in your insurance policy as the insurance company, then you’re insured by them.

Although they’re in the process of going into liquidation, the company has said that customers’ insurance policies are still valid for the next year since liquidation. So all Qudos insurances will end after 27 November 2019.

If you’re insured with Qudos, you can’t renew your policy or make changes to it.

The Central Bank has, however, recommended that customers swap their insurers anyway.

The Central Bank strongly recommends, based on the uncertainty around the payment of claims, that affected customers (ie, customers with policies in place with Qudos) contact their insurance broker to arrange alternative insurance cover.

What about if I have an outstanding claim?

If you want to report a new claim, you must report the claim in accordance with the procedure described in your insurance policy, according to the company.

A woman called Liveline yesterday to say that her house had gone on fire three months ago and Qudos had provided her home insurance. The claim was settled, and the company paid €67,000 to refurbish the house. A further €25,000 was due after the works were complete, which happened last Friday – a week after the company announced liquidation.

She’s now paying the builders in €1,000 installments out of her own pocket, and said that the insurance company isn’t giving them any information.

As the liquidation process is still underway and they’re still assessing the company’s finances, it’s not sure what will happen just yet. But as it stands, claims will not be paid at the moment.

RTÉ is reporting today that the state’s Insurance Compensation Fund could be forced to pay the 1,570 outstanding claims.

“We expect that more information regarding payment of claims will be available within one to two weeks,” Qudos said.

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