Advisers have expressed regret at GBG Insurance (GIL) entering administration and the loss of its product offerings particularly its specific international schools plan.
They also cited limited communication from the business during the process which had not helped the situation.
Earlier this month Health & Protection reported that GBG Insurance had fallen into administration after a multi-million pound financial blackhole caused a shortfall in capital and a last-ditch bid to rescue the international private medical insurance (IPMI) provider had collapsed.
Sad news
Kieran Brown, general manager UK at SIP Medical Family Office, told Health & Protection GBG’s Insurance’s administration was “sad news”, adding he felt particularly sorry for the firm’s UK team at this time.
“I do not believe what has gone on behind the scenes is any reflection on the UK based staff who until this point were gaining traction and good momentum,” Brown continued.
But while Brown added this week’s developments were a shame for the industry as a whole, it should not be a reflection on the state of the IPMI industry which he pointed out is in “good shape”.
“It would appear the collapse is more related to historical accounting matters as opposed to the immediate state of the market,” Brown continued.
“For clients affected and based on experience I am confident the market will rally to help with solutions. For example we have a very small number of private clients and we’ve already been informed a new solution is secured – and still with the alternative to see if other insurers would consider taking those clients on board.”
Complex situation
But Brown conceded for GBG group clients with multiple locations, solutions might be slightly more complex.
“But again the market is acquisitive and there will be no shortage of alternative providers who would be keen to support solutions,” he added.
“Our best wishes and thoughts are with all those affected and we would be pleased to help and support any clients or intermediary firms if they require support in considering alternative solutions.”
Solutions in place
Linda Beavis, senior consultant, global benefits at Aon, was also hopeful in her outlook, noting that it was only the insurance writing business of the Global Benefits Group which has gone into administration.
“GBG UK and GBG Europe are continuing as usual,” she said.
“Also they have a new partner so all business is being transferred to the new insurer with no break in cover and no change in terms, at least for the ones we had with GIL,” Beavis added.
“The situation is obviously not ideal and I think the communication hasn’t been as smooth as everyone would have liked due to the timing over the holiday season.
“However we now have solutions in place, so for the moment, we are satisfied that our clients have cover in place.”
Schools plan
And while not having much business with GBG, Lifecare International group commercial director for Qatar, UAE and Kenya, Amber Musson-Thorp (pictured), said the firm was disappointed to hear the news.
“We really felt that they had an aggressive presence in the UK and some good products to offer internationally such as their specific international schools plan which we were excited to be involved with,” she said.
“I believe that GBG made some strong hires in terms of talent and we were looking forward to watching their journey.
“We have not received any update from GBG at all as yet, what we have heard has come through social media and through word of mouth.”