News releases

Balva Insurance update

On 17 June, the Latvian regulator (FKTK) decided to withdraw all the operating licences issued to Balva in order to protect the insured persons. In accordance with Latvian law, Balva has to launch the winding-up process, by appointing a liquidator and agreeing the procedure for debt covering with the regulator, or transform the insurance company into a legal person that does not pursue insurance business.

Balva is obliged to continue fulfilling the terms of contracts entered into with their customers. Full details are available on the FKTK website.

The position under the SRA Indemnity Insurance Rules is that, as yet, there has not been an “insolvency event” as defined in the UK. We are seeking advice on the application of the definition of “insolvency event” to this developing situation, working with our partners at the Financial Conduct Authority and the Prudential Regulation Authority.

If an “insolvency event” occurs we will contact all firms currently insured with Balva explaining the action they must take. This would involve any firm that has professional indemnity insurance with Balva obtaining replacement cover within four weeks of any confirmation of any insolvency event.

Firms would also be advised to contact their broker (if they have one) and obtain their advice. If they do not have a broker, they will be recommend to contact one of the Qualifying Insurers who deal direct with firms to arrange replacement cover.

A list of Qualifying Insurers can be viewed here:

More on Professional Indemnity Insurance

A letter containing further details would be sent to all firms if an insolvency event is confirmed.

 
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