On 24 June 2020 the Danish Financial Supervisory Authority (DFSA) withdrew Gefion Insurance’s license to conduct insurance business due to the Company not being able to meet its Solvency Capital Requirement.
Subsequently, GIAS have entered Solvent Liquidation.
During this period of Solvent Liquidation policies remain in force with full entitlement. The process of solvent liquidation enables an orderly runoff of the business which is the same situation as GIAS has been in since March when they were required to cease writing new business.
All existing insurance policies will remain valid and some Mid Term Adjustments will be possible. Claims processing & services are unaffected.
In the event our policyholders require to process a Mid Term Adjustment please provide us with as much lead time as possible as such amendments are likely going to take longer to process than normal.
GIAS is included in the scope of protections offered by the Financial Services Compensation Scheme (FSCS) should said protections be required.
Situations such as this can be fluid and we will update our policyholders further in the event of significant new developments.
We have detailed some of the most frequently asked questions below.
Q. Is Gefion Insurance still operating?
A. Yes. Gefion Insurance is still operating and will continue to manage and administer the existing insurance policies.
Q. What is a solvent liquidation?
A. Solvent liquidation involves a liquidation of a company which has sufficient assets to cover its liabilities. The liquidators will liquidate the assets and distribute the proceeds to the creditors. In case of Gefion Insurance, the liquidators will run-off the insurance portfolio and settle the insurance claims.
Q. Are Gefion insurance policies still valid?
A. Yes. Gefion Insurance continues to operate and all existing insurance policies will not be affected by the liquidation.
Q. Will insurance claims still be settled?
A. Yes. Gefion Insurance continues to operate and all valid compensation claims will be settled.
Q. Can I place new insurance policies with Gefion Insurance?
A. No. Gefion Insurance can no longer offer new insurance policies.
Q. Can I renew existing insurance policies?
A. No. Existing insurance policies can no longer be renewed and will expire in accordance with their original terms without further notice.
Q. Does payment of an insurance policy in monthly instalments constitute a monthly renewal?
A. No. The insurance policy will expire in accordance with its original terms and conditions and the payment of monthly instalments does not constitute an automatic renewal.
Q. Can I make any adjustments to existing insurance policies?
A. Yes, if such adjustments are permissible and within the acceptance criteria under the existing insurance policy. Adjustments which increase the risk on the insurance policy (i.e. result in the need for additional premium to be paid by you) or require the issuance of a new insurance policy are not permitted and cannot be made. Contact your broker for full details.
Q. Are fleet policies still valid?
A. Yes. Fleet in fact all Gefion policies are still valid.
Q. Can insurance policies be cancelled?
A. Yes. Insurance policies may be cancelled in accordance with its terms and conditions.