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GFSC statement on LAMP Insurance Company Limited ("LAMP")

20 May 19

LAMP Insurance Company Limited (LAMP) has notified the GFSC that it has submitted an application to the Supreme Court of Gibraltar to appoint the Official Receiver and place LAMP into liquidation. The directors have taken this action as LAMP is insolvent and has been unable to secure additional financing. The hearing date is set for 31 May 2019.

LAMP is a Gibraltar incorporated company and is authorised and regulated by the Gibraltar Financial Services Commission (GFSC). LAMP provided general insurance products including legal expenses, healthcare, general and warranty insurance to policyholders in the UK, Europe and Asia.

Policyholders should be aware that whilst their policies are still valid, the firm is not in a position to pay claims. Policyholders should contact their broker, solicitor or other intermediary in the first instance as it may be considered prudent to replace the cover. 

The Official Receiver will work to collect the assets of LAMP with the objective of making distributions to insurance creditors, including policyholders. It is likely that the amount recovered will not be sufficient to meet the amount due to policyholders in outstanding claims and unearned premiums.

The GFSC will work closely with the Official Receiver and/or the designated Insolvency Practitioner, when appointed, to ensure that all policyholders are identified and communicated with directly and fairly.

In the interest of policyholders, LAMP is still actively considering all options, including a potential sale of the business. Any such solution would, however, be subject to the acquirer completing its due diligence, regulatory approval, and making an unconditional financial commitment prior to the 31 May 2019 hearing date. In the event that such a solution is forthcoming, an update will be provided on our website. 

The possibility that a sale may arise should not be relied upon by policyholders when considering acquiring alternative insurance products.


Questions and Answers

What is the position of existing policyholders?

Insurance policies issued by LAMP have not been cancelled or terminated and are technically still valid. However, claims arising under a policy will not be paid. The Liquidator when appointed by the Court, will collect the assets of LAMP which would be distributed to insurance creditors. It is not possible to estimate when such distribution might be made or its amount. Any distribution would be unlikely to be for the full value of the insurance claim.

What should policyholders do?

In the present circumstances, in which no claims arising under an insurance policy underwritten by LAMP will be paid, the policyholder should consult their broker, solicitor or other intermediary and it may be considered prudent to take out alternative cover with another insurer.

What happens to the premium paid to LAMP if new insurance cover is purchased?

The terms and conditions under your existing policy remain applicable and you should read your policy documentation in relation to cancellations. If you are entitled to a refund of premium upon cancellation this would be a claim against LAMP which should be notified in accordance with the policy terms. This claim will however not be paid by LAMP at this time and may only be paid at a future date from assets available to meet insurance creditors. It is also possible that the Liquidator when appointed will disclaim or terminate the policies. Such termination could give rise to a claim for return of premium, which again will not be paid by LAMP at this time and may only be paid at a future date from assets available to meet insurance creditors. It is recommended policyholders consult their broker, solicitor or other intermediary for advice.

What happens if I have a current claim?

Claims should be reported in accordance with the instructions on the policy documents. The Liquidator, when appointed, may admit claims as insurance creditors in the liquidation or submit claims to a compensation scheme if such a scheme is available for eligible policyholders. Claims will not be paid by the Liquidator.  Claims for eligible UK policyholders would be submitted to the Financial Services Compensation Scheme (FSCS). It should be noted that for claims on policies written in countries on a non-admitted basis there may be no compensation scheme available.


• UK Policy Holders Only

If eligible under the rules of the scheme, the FSCS may protect UK policyholders in respect of claims made under policies written by LAMP but unpaid along with claims for return of premium. The Liquidator, when appointed, will be cooperating with the FSCS to facilitate the processing of claims for affected UK policyholders. 


• Non-UK Policy Holders

The Liquidator, when appointed, will contact regulators and compensation schemes of the other countries in which LAMP policies were written. It may well be that schemes for the compensation of policyholders are not available in all jurisdictions. Policyholders should seek advice from their broker.


Contact Details

Policy holders should contact their broker, solicitor or other intermediary in the first instance through their usual contacts .

Should you require any further information, queries from policyholders can be submitted to any of the e-mail addresses below: