Footprint Underwriting is an underwriting agent based in Sandyford, Dublin.
It essentially distributes policies for insurance companies.
It acted as a wholesale broker with its policies sold through a network of insurance brokers throughout the State.
Its network of Irish insurance brokers include First Ireland, Chill Insurance, and Campion Insurances.
It provided private car, home insurance and other personal insurance.
But last Friday night Footprint Underwriting managing director Simon Richards sent an email to brokers saying it was closing down.
The email said: “It is with great sadness that I must announce that with immediate effect Footprint Underwriting will cease trading.”
The Central Bank, which regulates insurers, said customers “remain fully insured under their existing policy”.
Footprint Underwriting told the insurance brokers it was “unable to secure a level of policy sales that will facilitate ongoing business activities”.
The statement said its underwriters Accredited Insurance (Europe) Limited, Wakam and ARAG will continue to honour their active policies.
“Please be assured that we are working with our insurance providers concerning the ongoing facilitation of policy and claim management, and we will share further information with you early next week,” the Mr Richards told brokers.
The decision of Footprint Underwriting to cease trading was first reported on TheJournal.ie.
Brokers are seeking clarity on what the situation is for existing customer policies, whether those who have recently taken out a policy will be able to request refunds.
The firm has sold tens of thousands of policies through brokers across the country.
The Central Bank said in a statement: “We are aware of the situation regarding Footprint Underwriting DAC.
“Footprint Underwriting DAC is an intermediary which distributes policies for insurance firms, any customer remains fully insured under their existing policy.
“We are engaging with these insurers to remind them of their responsibilities to customers. Any customers who have questions about their policy should contact their broker at this stage.”
A Central Bank spokesperson said a new phone line and an email address would be put in place tomorrow for policyholders of the firm.
Brokers spoken to by this publication said difficulties getting the payouts on damage claims for motorists insured with Footprint Underwriting and poor service levels for brokers had prompted a number of brokers to stop placing business with the firm.
They said the intermediary offered good premium rates and was conservative in the types of risks it took on.
But they said it was difficult to get payouts for their customers insured with Footprint when they had a claim.
Many brokers were also unhappy when Footprint changed from using a long-standing underwriting to a firm that is less well known in the industry.
Mr Richards, the firm’s current co-director with his wife Samantha, founded it in 2012.
On the firm’s site it describes itself as one of Ireland’s top underwriting agencies, and says it offers a range of competitive insurance products with “market leading cover and service”.
Mr Richards has been contacted for a comment.
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