Insolvency of insurers
Produced in partnership with Geraldine Quirk of Bryan Cave Leighton Paisner

The following Restructuring & Insolvency practice note produced in partnership with Geraldine Quirk of Bryan Cave Leighton Paisner provides comprehensive and up to date legal information covering:

  • Insolvency of insurers
  • Applicable legislation
  • Insolvency procedures available to an insolvent insurance company
  • Liquidation
  • Administration
  • Company voluntary arrangements
  • Appointment of a provisional liquidator
  • Scheme of arrangement
  • Reasons for insolvency
  • Difficulties unique to insurance insolvency
  • More...

Insolvency of insurers

Applicable legislation

Insolvency laws generally make special provisions for insurance companies, because of the regulated status of the industry and the importance of insurance to the economy. From 6 April 2017, the Insolvency (England and Wales) Rules 2016 (Consequential Amendments and Savings) Rules 2017, SI 2017/369 apply, effectively replacing any references in the Insurers (Winding Up) Rules 2001 to the IR 1986, SI 1986/1925 with the IR 2016, SI 2016/1024 (see The Insolvency (England and Wales) Rules 2016—overview.

The key changes under The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018, SI 2018/208 for insurers include:

  1. amending the Insurers (Winding Up) Rules 2001, SI 2001/3635 to replace various references to ‘creditors’ meetings’ with ‘qualifying decision procedure’ and ‘summons a meeting’ with ‘seeks a decision’

  2. amending various references to meetings in the Insurers (Reorganisation and Winding Up) Regulations 2004, SI 2004/353, new reg 28A (composite insurers: seeking decisions from creditors), reg 29 (composite insurers: general meetings of creditors) and reg 33 (voluntary arrangements: treatment of insurance debts)

  3. amending various references to meetings in the Financial Services and Marketing Act 2000 (Administration Orders Relating to Insurers) Order 2010 (2010 Order), SI 2010/3023

  4. transitional provisions (see SI 2018/208, rr 18, 20) where a relevant meeting (as defined in SI 2018/208, r 16) is to be held on or after 13 March 2018,

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