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A total of six motor insurers will no longer be able to provide policies to Channel Islands customers as a consequence of a recent law change in Gibraltar, it has been confirmed.
However, a senior DVS official has claimed the change "poses little risk to continued access to motor insurance policies in the island".
Earlier this month, Admiral Insurance said it will longer be able to enter into or renew existing contracts with customers in Jersey or Guernsey because its car and van insurance is underwritten by a company based in Gibraltar, whose Government had recently introduced legislation preventing insurers based there from offering policies to anyone in the Channel Islands or Isle of Man.
A spokesperson for the Admiral Group confirmed that the changes came into effect from 1 September, but added that existing customers who have a motor policy with the company will still be insured right up until their policy expiry date.
It has now been confirmed that Admiral is "one of six insurers authorised to sell motor insurance in Jersey affected by this decision".
However, Gordon Forrest, Head of Driver and Vehicle Standards, reassured islanders that "the withdrawal of these six companies poses little risk to continued access to motor insurance policies in the Island, as there are a further 41 authorised insurers still offering motor insurance business in Jersey.”
Pictured: Admiral Insurance also confirmed that Channel Islands customers with pet or travel insurance with the company will not be impacted.
He said that "at least one" of the six affected insurers "had no active policies in force in Jersey", adding that Admiral Insurance's "business in Jersey is not significant".
Mr Forrest also outlined the reasons behind the changes.
He explained: “Prior to Brexit, in the event of one of the jurisdiction’s insurers becoming insolvent and being unable to meet valid claims, Gibraltar would have been covered by the Financial Services Compensation Scheme (FSCS) – the UK’s statutory fund of last resort for customers of financial services firms.
"However, since Brexit, Gibraltar has been excluded from the FSCS, and the Gibraltar Government has therefore decided to exclude the underwriting of motor policies to other states.
"This is because in the event of default, the government would need to bail out the defaulting insurer."
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