East West Insurance Company Limited (in Administration) ("the Company" or "EWIC")
On 12 October 2020 Richard Barker and Simon Edel of EY were appointed as Joint Administrators of East West Insurance Company Limited (“the Company” or “EWIC”). The appointment was made by the High Court following an application under the provisions of paragraph 12(1) (b) of Schedule B1 to the Insolvency Act 1986.
Update from the Joint Administrators to policyholders and claimants – last updated 10 May 2021
Since the Company entered administration on 12 October 2020, the Joint Administrators have been working collaboratively with third party claims handling service provider, Armour Risk Management Limited (“ARML”), on the progression of the Company’s claims portfolio. The Joint Administrators and ARML have been working with the Financial Services Compensation Scheme (“FSCS”) to assess eligibility for compensation by the FSCS under its Policyholder Protection Rules and to determine the appropriate next steps to progress eligible claims through to completion.
There are a number of complex issues that require resolution or a workable way forward for all stakeholders in order to allow progress of the open claims. These issues include, but are not limited to policy wordings, FSCS eligibility checks and information requirements, cash flows and funding arrangements, common parts claims on multi-occupancy properties, rights to recoveries from third parties and various litigation matters. The Joint Administrators have resolved the issue of the funding of loss adjustors and investigative works and this resolution has enabled progression of the majority of the open claims.
We are working closely with the claims handling service provider in order to focus on systematically progressing claims to ensure that those claims that have a risk to life are prioritised in an appropriate manner and at the same time progressing those claims which are high in number but are less complicated. As a result, we have collectively been able to progress over 75per cent of the current open claims.
On 22 February 2021, it was announced that Premia Holdings Limited had agreed to acquire the Armour Group and, as a result of this transaction, ARML advised that it would cease to provide services to the Company by 30 June 2021. In advance of this, the Joint Administrators commenced a tender process for a new claims handling service provider to be appointed to manage the Company’s policies. From the tender process, Weightmans LLP (“Weightmans”), a legal firm with significant insurance claims handling experience and, in particular, building guarantee claims experience, has been selected as the Company’s new claims handler and they commence their role on Monday, 10 May 2021.
Any current claims will be automatically transferred to Weightmans and will continue to be progressed. Weightmans will be in contact with all policyholders with live claims during the next month to provide updated contact details. The contact telephone number remains the same although the general email address will now be team@east-west-insurance.com.
If you are a policyholder who would like to submit a policy claim after 10 May 2021, please submit your claim to team@east-west-insurance.com.
If you still require any further information or assistance, please consult the FAQs provided in the “Administration documents” section below or contact us at team@east-west-insurance.com.
The Financial Services Compensation Scheme ("FSCS")
The FSCS protects UK policyholders, generally individuals or small businesses, who are eligible to claim under the Policyholder Protection Rules. Based on the Administrators’ current understanding of the Company’s policyholders, it is expected that a significant number will meet the FSCS’ eligibility rules.
Further to an amendment to the Policyholder Protection Rules on 8 October 2020, building guarantee policyholders protected by the FSCS scheme will receive compensation at 100% of EWIC’s liability for claims.
Further details can be found on the FSCS website at fscs.org.uk/what-we-cover/insurance/
Media
All media enquiries are directed to contact ccarswell@uk.ey.com.
