A fortnight ago (here), we reported that Gibraltar-based after-the-event (ATE) insurer, LAMP, had applied to the Supreme Court and requested that the company be placed into liquidation.
At the time, there was still an opportunity for LAMP to complete a ‘potential sale of the business’, prior to the application hearing on 31 May 2019.
However, no sale materialised and we can now report that LAMP’s application was accepted by the Court, which appointed an Official Receiver as liquidator of the company.[i] In turn, the Official Receiver enlisted Grant Thornton’s Gibraltar office to ‘advise and assist on matters relating to the operation and conduct of the liquidation’.
The Gibraltar Financial Services Commission (GFSC) initially advised LAMP policy holders to ‘contact their broker, solicitor or other intermediary’ to organise alternative cover with a solvent provider, but has since updated its advice on the LAMP website:
‘We understand that Grant Thornton will be writing to all LAMP policyholders with further information in due course’.
Now4cover, an insurance provider which used LAMP, only became aware of its financial problems days before the Supreme Court application was filed last month. CEO, Michael Muzio, predicts that the Official Receiver will recover funds that are insufficient ‘to meet the amount due to policyholders in outstanding claims and premium refunds’.
Looking after the interest of UK customers, Gravesend-based Now4cover has endorsed applications made through the Financial Services Compensation Scheme (FSCS), which stated, on 20 May, that:
‘FSCS is aware of the situation and will be working with the appointed Liquidator to protect eligible UK policyholders’.
[i] Laurence Eastham, ‘Lamp enters liquidation following Supreme Court decision’ (3 June 2019 Insurance Age) <https://www.insuranceage.co.uk/insurer/4027791/lamp-enters-liquidation-following-supreme-court-decision> accessed 4 June 2019.