Making a monkey out of their customers: UK SMEs and sole traders lose out as Gibraltar based insurance company enters administration

At the end of January Prometheus Insurance Company Limited (PICL) entered administration when its management said they could no longer service their liabilities.

Tradewise

The BBC Radio4 Moneybox presenter Paul Lewis warned customers that the company previously traded as Tradewise Insurance had gone bust. He said: “If you are a UK customer then the Financial Services Compensation Scheme is there to make sure you do not lose.”

The Financial Services Compensation Scheme is the UK's statutory safety net for customers of the insurance companies and stepped in to protect the majority of PICL policies sold to UK individuals and small businesses. ICSM Credit understands most of the customers held motor insurance policies, including motor trade, haulage, private and commercial vehicle policies. The firm used its UK-based intermediary, Tradewise Insurance Services Ltd (TWIS), and a network of brokers to sell policies to many SMEs in the UK including some subscribers of ICSM Credit.

ICSM Credit understands FSCS is working with the Administrator, Frederick (‘Freddie’) White of Grant Thornton and the Gibraltar Financial Services Commission to understand the impact of TWIS's administration.

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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk