Bureau MD: Unrated ERIC has ‘no problem’ paying claims

Unrated Icelandic insurer European Risk Insurance Company (ERIC) has ”no problem” paying claims despite reportedly denying a recent flood claim, according to Bureau Insurance Services managing director Chris Jordan.

He also said the insurer had made an interim payment to the policyholder who made the flood claim.

Bureau placed flood insurance business with ERIC before the unrated insurer had its licence revoked by Iceland’s regulators and closed its doors to new and renewal business in February.

The Mail on Sunday reported over the weekend that ERIC had denied a claim by policyholder Roslyn Earle, whose Wiltshire home had flooded.

Earle obtained her cover through the broking division of the Country Gentlemen’s Association, which in turn placed business with ERIC through Bureau and underwriting agency Iprism.

Jordan told Insurance Times: “As we understand it ERIC is continuing to pay claims as if it were in full operation. There is no problem with that at all.”

He added: “I can assure you it will have no problem paying future claims.”

Iceland’s financial regulator withdrew ERIC’s licence on 12 February because the company no longer complied with the regulator’s minimum solvency requirement.

ERIC declined to comment on Roslyn Earle’s claim specifically, but has issued a statement saying that it decided at a recent board meeting to “pay out costs that would minimise future claims”.

This includes paying for alternative accommodation for policyholders where necessary.

The insurer added: “Loss adjusters will be appointed when appropriate.”