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FSCS: Prometheus Insurance Company Ltd formerly Tradewise Insurance Company Ltd & Triton Insurance Brokers now in administration

Jan 28, 2021 | FCA

Link(s): https://www.fscs.org.uk/failed-firms/prometheus/  
https://www.fscs.org.uk/failed-firms/triton-insurance-brokers-ltd/

Context

FSCS provides an update on Prometheus Insurance Company Ltd and Triton Insurance Brokers.

Key points to note

  • Prometheus Insurance Company Ltd (PICL) (FRN: 207638), is now in administration, as it can no longer meet its liabilities and pay claims. The Gibraltar-based company previously traded as Tradewise Insurance Company Ltd.
    • The FSCS declared the firm in default on 28th January 2021.
    • The FSCS is stepping in to protect the majority of PICL policies sold to UK individuals and small businesses.
    • These include liability, bicycle, and motor insurance policies, including motor trade, haulage, private and commercial vehicle (taxi, black cab, and fleet) policies.
    • The firm used its UK-based intermediary, Tradewise Insurance Services Ltd (TWIS), and a network of brokers to sell policies.
    • The FSCS is working with the Administrator, Frederick (‘Freddie’) White of Grant Thornton and the Gibraltar Financial Services Commission to understand the impact of TWIS’s administration and will continue to update its website with the latest news.
  • Triton Insurance Brokers Ltd (FRN: 487601) has also failed; the FSCS posted details about this firm on its website on 26th January 2021
    • Triton conducted business in relation to non-investment insurance contracts for commercial and retail customers throughout the UK, offering independent advice in relation to insurance arrangements covering commercial and industrial property, household, and other types of insurance policies.
    • Discussions with the FCA have confirmed that the firm continued to sell policies to customers despite having its agency agreements with underwriters terminated, resulting in customers purchasing invalid insurance.
    • The firm is also accused of withholding customer premiums which should have been paid to underwriters.
    • The FCA became aware of issues with Triton in 2019 and started enforcement proceedings against the firm on 17th February 2020 to remove it from the FCA register and formally dissolve the firm.
    • Confirmation has now been received from the FCA that Triton is dissolved from 26th January 2021 and is no longer authorised to conduct insurance related business. The firm’s permissions have now been formally removed.
    • The FSCS has been meeting the FCA & FOS in relation to on-going and potential claims and has confirmed that the FSCS is open to claims from customers of Triton who have claims against the firm.