Information Update – Zenith Insurance plc

We wish to advise that Zenith Insurance plc (ZIP), part of the Markerstudy Group has decided to cease writing motor business in Ireland through all of its Irish MGAs (Managing General Agents). In respect of Bump Insurance, this means that no more policies will be written by us on behalf of this particular Insurer from February 2017 onwards. ZIP’s decision to withdraw is due to a number of factors, as stated: “…. increasing regulatory burden, a lack of engagement with us by Irish industry bodies, which we believe creates a market disadvantage for us and our partners and finally the uncertain legislative environment. Our decision is not a reflection on the performance or professionalism of Bump Insurance”.

The combined effect of these factors is to make Ireland an unattractive territory in which to underwrite motor insurance business and the effort and resources required to deal with the challenges is not justified by the level of premium written in Ireland by ZIP, which is small relative to the Markerstudy Group’s overall annual premium income of over £500m sterling – most of which is written in the UK.

From a Customer’s/Broker’s perspective we can confirm that:

–        WE WILL CONTINUE TO ACCEPT NEW AND RENEWING BUSINESS AS USUAL

(This means, for example, that cover under a policy incepted or renewed on 28/9/2016 will expire on 27/9/2017, and that thereafter renewal terms will be offered by Bump on behalf of the new Insurer)

–          Policyholders’ insurance COVER REMAINS EFFECTIVE until the expiry date and claims will be managed and settled as normal

      –          Policy amendments/changes to policies during the period of insurance will be managed as normal through your insurance broker/intermediary.

The decision by ZIP to leave the Irish Market is disappointing for Bump and also for Consumers, because it reduces the choices available to them. Greater effort should be made to overcome the barriers to entry for financially strong companies to the Irish market. In addition, the inability to trade on a level basis requires detailed examination and remedy in the interests of Consumers.

 

If you have any queries in relation to the above, please send same to queries@bump.ie