Insurance firm East West was placed into administration on 12 October 2020. Richard Barker and Simon Edel, both of Ernst & Young LLP, were appointed as Joint Administrators.
East West Insurance Company Limited (East West) is an insurance firm authorised and regulated in the UK by the PRA and the FCA.
On 12 October 2020, following application to the High Court of Justice, East West was placed into administration.
The firm has ceased writing any new insurance, and has been focused on claims management and run-off. The firm had a range of insurance policies including building guarantee policies.
The Court has appointed Richard Barker and Simon Edel, both of Ernst & Young LLP (EY), as Joint Administrators of East West, following an application by the directors.
If you are an East West policyholder, the administration of East West doesn’t automatically end or cancel your contract of insurance, and you’ll be covered by the Financial Services Compensation Scheme (FSCS) if you’re an eligible policyholder. The administrators will write to you in due course. They will also write to you with their proposals for the administration, usually within 8 weeks of appointment.
More details can be found on East West’s website, EY’s website and from the FSCS.
What is the FSCS and will they cover any losses?
The FSCS is the UK’s financial compensation scheme. It protects customers of authorised financial services firms if they fail or stop trading.
To receive compensation, you must meet certain eligibility criteria. Eligible policyholders of East West will be protected by the FSCS should the firm fail and be unable to pay any protected claims made against it. Please contact the FSCS for details on eligibility.
Why the directors of East West applied to place the firm into administration
A Court of Appeal ruling adversely impacted East West’s book of UK building defect liability, which then affected the solvency position of the firm. This meant it was unable to pay its debts. Having explored the options available to East West, the directors formed the view that there was no viable alternative to placing the firm into administration.
Is the failure of the firm connected to the impact of coronavirus (Covid-19)?
The failure of East West is not connected with coronavirus.
Where can I find more information from the insolvency practitioners?
Customers can find more information about how they will be affected and steps they can take via:
- EY’s website
- client helpline: 0333 4000 393
- email: [email protected]
I have already claimed under a policy with East West. Will my claim still be assessed and any successful claim paid in full?
Eligible clients are entitled to FSCS compensation. Please see the earlier question ‘What is the FSCS and will they cover any losses?’.
The administrators will write to you with their proposals for the administration usually within 8 weeks of appointment, this will include the process of how you make a claim.
I have a policy with East West. Does it remain valid?
The administration of East West doesn’t automatically end or cancel the insurance policies. If you want to make a claim, you should follow the instructions in your policy. You can contact the administrator for more details.
Do I need to use a claims management company (CMC)?
If you are approached by a claims management company (CMC), you should proceed with caution. For the majority of clients, there is no benefit in involving a third party in a claims or complaints process.
If you use a CMC to help you, the CMC is likely to seek a fee, which may reduce what you get back.
If you are considering using a CMC to help you, we suggest you first discuss this with the administrators using the contact details above.
Being alert to scams
All customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from East West or Ernst & Young LLP (EY), please end the call and call them back using the number above.
Is the FCA overseeing the administration?
East West continues to be regulated by the PRA and the FCA. It remains subject to supervisory oversight and the PRA’s and our rules. The administrators are officers of the Court and need to comply with all insolvency law.
The individuals appointed are authorised to act as licensed insolvency practitioners by the Insolvency Practitioners Association (IPA).
We are liaising with the administrators.