LAMP is insolvent (underwriter for now4cover)

jonfrewin

Good news - now4cover has now arranged a transfer of coverage to a new underwriter, on the same terms as were originally set up. This has presumable been paid for by the financial services compensation scheme.

“It is with great pleasure that I can say we have now concluded an arrangement for an insurance company to take over from LAMP Insurance Company Limited ('LAMP'). This is Red Sands Insurance Company (Europe) Limited ('Red Sands') and is a great outcome for existing policyholders. Without this in place the liquidator will be "disclaiming" all policies and ending cover on the 19th July 2019.

“Given our current terms of business with you doesn't allow us to do this on your behalf I need to ask you to confirm this is acceptable.
The two options you have are:

Agree that we can arrange for your policy to be transferred to Red Sands. This means:
Your cover remains on existing terms until the expiry of your policy.
You don't need to pay any additional premium.
Your claims will be met per the terms of the policy by the new insurer from the 20th July 2019.
We will be able to offer you a policy at renewal.

Confirm that you want us to cancel your cover from the date of the disclaim. This means:
Cover will cease on the 19th July 2019.
You will need to immediately purchase a new policy starting from the 20th July 2019.
You will get a refund of 90% of any premium not used for those customers who haven't made a claim.
You will receive your refund approximately four to five weeks after the 19th July 2019 via a cheque from the FSCS.

Frequently Asked Questions
Who are Red Sands?

You can find more details about them on their website. They are an independent European insurance group that operates across a number of different market sectors offering a diverse range of products and services. They have over 1 million policyholders and at last report their group solvency ratio was 188%. Their philosophy is structured around five cornerstones: sustainability, partnership, risk management, independence and fun. This unique outlook enables them to develop an expert understanding of their partners' business and requirements. They work as a team both within Red Sands and with their partners including their distributors and administrators. now4cover has become one of their distributors.

Will it cost me anything?

No, your existing premium paid is sufficient.

Will my claims be paid in full?

Once the transfer has happened any losses that happen after that date will be handled by the new insurer without any deductions.

For any claims that happen before the date of the transfer they will be subject to agreement by the liquidator and paid at 90% by the FSCS of the amount that would have been due under the policy with LAMP.

Can I cancel?

Yes, the terms and conditions remain the same allowing you to cancel at any time.

What happens if I do nothing?

We believe leaving you uninsured is a worse outcome in the event of no response from you. We will transfer the policy across and allow you to cancel at any time before your policy is due for renewal. If you decide to cancel you will get a refund of 90% of any premium not used if you haven’t made a claim.

Why did you choose Red Sands?

We decided to partner with Red Sands going forward for the following very good reasons:

They are well established in the UK through their other products and partners with over one million policyholders. Across Europe they are authorised in 15 countries and have over three million policies.
They have a strong capital base. Their latest group solvency capital ratio is 188%.
The keep their overheads very low. By partnering with complimentary experts in particular product lines they avoid the need for expensive branch offices. This we can pass on to customers through better value products. They focus on providing consumer centric insurance products which is closely aligned with our business model.