Irish insurers have asked the republic’s finance minister for "clarification" on the terms of the sale of Quinn Insurance amidst concerns that the deal did not achieve full value.
Irish Insurance Federation Mike Kemp has written to finance minister Michael Noonan following last week’s deal, which saw Liberty Mutual take a 51% stake in the insurer.
Kemp warns of the "moral hazard" that could arise "if there is any suggestion that full value" was not received in the sale, which could leave a €700m black hole to be funded by an insurance levy.”
Kemp said: "We want clarification on the terms of sale and plans for the future funding of the compensation fund, as consumers and insurers will be affected and have a material interest in the outcome.”
The federation has also called on the Irish government to ensure that any compensation resulting of the collapse of Quinn Insurance is entirely offset by the removal of a 3% stamp duty on insurance policies.
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