Customers paying for Quinn fall-out 'for years to come'
It is claimed insurance customers will have to pay for the mistakes of Quinn Insurance for years to come.
It emerged yesterday that the administration of the company may cost up to €1.6bn. The money will come from the Insurance Compensation Fund, which is funded by a levy on home and motor insurance customers.
Markets correspondent with the Sunday Business Post John Ihle said the regulator found a catalogue of mistakes at Quinn which would prove very costly for customers.
"Inadequate reserving means you haven't set aside enough money to pay out claims when they come in," he said.
"Poor underwriting means that you assess the risks improperly, so the claims that are coming in are greater than they were expected to be.
"The pricing control means you were not charging people enough for the risks you were insuring.
"A lot of people took advantage of that and now we're all going to pay for it in terms of this levy for years to come."
