The Danish Maritime and Commercial High Court has officially declared the bankruptcy of Qudos Insurance.
Following this development, the non-life insurer – whose operations were not only in Denmark but also in France, Germany, Greece, Ireland, Italy, Malta, Norway, Sweden, and the UK – is now part of the ‘failed firms’ list provided by British compensation fund FSCS or the Financial Services Compensation Scheme.
In the UK, the in-default insurer provided policies such as motor insurance, GAP insurance, as well as accident, sickness, and unemployment insurance.
“We are still in the process of identifying how many UK customers are affected by the failure of Qudos Insurance A/S,” stated FSCS chief operating officer Jimmy Barber.
“We are working closely with the liquidators, the Danish Guarantee Fund, and the Danish FSA to make sure all those affected by the failure of Qudos are compensated accordingly.”
Meanwhile the European Insurance and Occupational Pensions Authority (EIOPA) said it has been in close contact with the Danish Financial Supervisory Authority (Finanstilsynet), the regulator of Qudos Insurance, to ensure equal treatment of policyholders throughout the continent.
“Finanstilsynet has informed that by this court decision the Danish Guarantee Fund for non-life insurance undertakings will be triggered according to bankruptcy procedure under the existing regulatory framework, which covers all European policyholders,” noted EIOPA.
