Up to 75,000 van and car drivers have been warned that their insurance may not pay out in the event of a claim after Setanta Insurance chose to dissolve its business. The insurance company had been in the process of winding down, but at an Extraordinary General Meeting it was decided to immediately dissolve the company and surrender its business licence.
Setanta primarily covered the commercial fleets of small companies but did also have a number of private car policies on its books. Policyholders have been told that claims payments have been suspended until further notice as it awaits the official appointment of a Maltese liquidator. Despite only operating in Ireland Setanta was licensed by former chief executive Mike Matthews in Malta in 2007, conceivably to take advantage of a more lax regulatory regime.
Despite having no powers over the company the Central Bank here said it will require the company to notify all of its policyholders of the situation and the implications for them.
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Based in Blanchardstown, and selling insurance through a network of brokers, it is believed Setanta had as many as 100,000 customers at the start of the year when the winding down process began.