East West Insurance Company Ltd enters administration
East West Insurance Company Ltd (“EWIC”), a UK-based insurance company, entered administration on 12 October 2020. The firm is no longer paying its policyholders’ claims. FSCS is stepping in to protect most of the policies EWIC sold in the UK to individuals and small businesses with an annual turnover of less than £1 million. FSCS declared EWIC in default on 12 October 2020.
FSCS is working closely with EWIC’s joint administrators, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to understand the impact of the insolvency.
EWIC had a portfolio of 10- to 15-year structural defects insurance policies which Zurich Insurance Plc transferred to it in March 2018. The structural defects policies were issued to homebuyers by Zurich, and covered issues such as defective cladding.
Following a rule change by the PRA, from 8 October 2020, FSCS protection for building guarantee policies (which include policies providing structural defects cover) has increased to 100 per cent of the value of a claim.
Richard Barker and Simon Edel of Ernst & Young LLP have been appointed as joint administrators of EWIC. FSCS will work closely with the administrators to ensure all eligible policyholders affected by the failure are protected. Armour Group will continue to manage EWIC’s claims handling functions.
Policyholders should check the FSCS website for updates at www.fscs.org.uk/failed-firms/east-west. Further information can also be found at www.ey.com/en_uk/eastwestinsurance.
Contact information for EWIC policyholders: Email email@example.com, telephone 0333 4000 393.
Suzette Browne T: 07500 842747
James Tweed T: 020 7375 8646
Anthony Ozimic T: 020 7375 863
Sinéad Meckin T: 07815 489087