Understanding the GBG Insurance Limited Administration: Policyholder FAQs
Global Benefits Group (GBG) Insurance Limited, one of the most well-known international health insurance providers, entered into administration on December 21, 2023 following a capital shortfall. This raises questions about the status of policyholders’ policies and their necessary course of action.
This Pacific Prime Latin America article aims to clarify the situation and guide policyholders through the steps they need to take when their insurer files for bankruptcy.
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Why Did GBG Insurance Limited Enter Administration?
GBG Insurance Limited entered administration due to the discovery of historical financial issues that resulted in a capital shortfall. Despite efforts to sell the business, no solution was found, leading the directors to conclude that the company was insolvent and place it into administration.
What is Administration in Guernsey?
An administration order in Guernsey refers to an insolvency procedure where a person is appointed to oversee the affairs of a company that’s insolvent or at risk of insolvency to either help the company continue operating or to maximize the value of its assets through a realization process.
After GBG entered administration, the Insolvency Practitioners from advisory firm Teneo Alex Adam, Andrew Wood, and Michael Tagg were appointed as Joint Administrators of GBG and have been assessing the best course of action to progress and evaluate eligible claims.
What Are the Impacts of GBG’s Insolvency on My Policy?
GBG Insurance Limited entering into administration means that the company won’t be able to provide the coverage outlined in your policy. Still, the impact this may have on your policy varies depending on whether you secured insurance with the company before or after it entered administration.
Is My GBG Insurance Limited Policy Still Valid?
The validity of your GBG Insurance Limited policy depends on who your insurer is. This is because your direct insurer may not be GBG even though you’re their customer. It’s crucial to check your policy documentation to identify the insurance company that underwrites your policy.
If your insurer is named as another company, your policy is still valid. If your sole insurer is GBG Insurance Limited, your policy is also valid, but you’re no longer guaranteed to be fully covered by your policy.
While the full extent of claim payments and timing remains uncertain, GBG policyholders are encouraged to contact their insurance agent or broker to find alternative options and have their questions regarding policy documents answered.
Is My Prepaid GBG Insurance Limited Policy Still Valid?
Your prepaid GBG Insurance Limited policy remains valid if it’s issued by a different provider, but you should contact the Administrator if GBG is your sole insurer. Checking the insurer for a policy set to commence after GBG entered administration will help you understand your policy’s validity.
If your policy is provided by a different party or if there is a co-insurance or fronted arrangement in place, you’re still entitled to ongoing benefits. But, if your policy was intended to be solely covered by GBG, please contact the Administrators at [email protected] for more details.
Will the Claim I’ve Submitted to GBG Be Paid?
Your policy is still active, so please follow the standard process outlined in your policy documents if you need to make a claim. You can do this via the GBG Customer Portal, by sending an email to [email protected], or by contacting the claims handling team at +1.866.914.5333.
Am I Covered by an Insurance Compensation Scheme?
It’s unlikely that policyholders will be protected by an insurance compensation scheme. Still, the Joint Administrators are reviewing policy documentation and engaging with regulators to assess whether or not policyholders are covered by such a scheme.
What Should I Do If I’ve Secured Insurance With GBG?
You should identify your insurer before finding alternative coverage or canceling your policy with GBG. This is because you may not have been directly insured by GBG and aren’t affected by the insolvency. If you’re insured by GBG, you may choose to find alternative coverage or cancel your policy.
How Do I Identify My Insurer?
You may either be covered solely by GBG, GBG and Best Doctors Insurance Limited, or other insurers. Finding the name of the insurer listed in your policy documentation is the first step you should do to understand the impact GBG Insurance Limited’s insolvency has on your insurance coverage.
Your insurance policy may be underwritten by different insurers, so please refer to the following scenarios on GBG’s official website:
|
Name(s) of insurer(s) on your policy documentation |
Section you should refer to |
|
GBG Insurance Limited |
|
|
GBG Insurance Limited and Best Doctors Insurance Limited (policies issued since September 1st, 2023 within Latin American region only) |
|
|
Others |
For queries related to your policy documents, you can contact your insurance agent or broker. You can also access the GBG’s online Customer Portal for additional information. For specific questions about the administration process, you can contact the Joint Administrators at [email protected].
Should I Find Alternative Coverage or Cancel My Policy?
Switching to alternative coverage and canceling your GBG Insurance Limited policy can have different impacts, so it’s best to consult your insurance agent or broker to determine the most suitable course of action.
Some insurers may allow you to transfer your policy to their network, while canceling your policy may result in a refund. However, any refunds due will rank as unsecured claims against GBG, and the amount to be paid is currently unknown.
What Are the Roles of Insurance Brokers?
Insurance brokers possess the expertise to analyze the complex information regarding GBG regulations following its administration. They can liaise with the company’s representatives to help you understand the impact of the insolvency on your insurance policy without bias.
With GBG Insurance Limited entering into administration, many policyholders have turned to insurance brokers like Pacific Prime for consultation, making us ready to offer you appropriate guidance with our comprehensive insights and obligation-free review.
Are you wondering what your options are as a GBG Insurance Limited policyholder? Reach out to our team of insurance experts for impartial advice today!
Conclusion
Policyholders of GBG Insurance Limited should review their policy documentation to identify their insurer and the effect of the company’s administration. While policies underwritten by other insurers remain valid, those solely insured by GBG should consult insurance brokers for alternative options.
Navigating the complexities of insurance transfers can be challenging, especially for GBG policyholders. The good news is our team of experts at Pacific Prime is well-equipped to guide you through this process, ensuring you find the most suitable coverage during this transition.
With over 20 years of expertise in facilitating policy transfers between insurers, we, as an independent broker, offer exclusive insights and impartial advice to help you find the most appropriate alternative option tailored to your specific requirements and budget.
Get in touch with us for a FREE quote and unbiased plan comparison service today!
Frequently Asked Questions
What is GBG Insurance Limited?
GBG Insurance Limited is an insurance company operating under Global Business Group that entered administration due to insolvency on December 21, 2023. Before the administration, the company used to offer a wide range of insurance products and services, including life and health insurance.
Why Did GBG Insurance Limited Enter Administration?
GBG Insurance Limited entered administration because they uncovered historical financial issues resulting in a capital shortfall. Despite attempts to sell the business, the company couldn’t find a solution, and the directors concluded that GBG was insolvent and placed it into administration.
Is My GBG Insurance Limited Policy Still Valid?
Your GBG Insurance Limited insurance policy will only be valid if it’s provided by another party. Policyholders who are insured solely by GBG will likely face a shortfall against claims they seek to bring in the administration, so they’re highly recommended to seek alternative insurance options.
How Long Does It Take For GBG To Process My Claim?
There’s no set time frame for claims submitted to GBG Insurance Limited after it entered into administration. Claims handlers on behalf GBG are working as quickly as possible to progress existing claims. Claims holders with other insurers may see a slight delay in claim payments for a short while.
What Can Insurance Brokers Help Me With My GBG Policy?
An insurance broker can help you understand the impact of GBG Insurance Limited’s administration on your policy, explore alternative coverage options, guide you through potential policy transfers, and find a new policy that suits your preferences and budget.
After graduating at the top of her class and earning her Bachelor’s Degree in English from Thammasat University, Natthachamon has been practicing her writing skills and making education more easily accessible for Thai children as an Educational Content Creator and English Curriculum Developer for various educational facilities and organizations across the country.
Natthachamon is also a mother of two cats, a board game enthusiast, and a big bookworm who enjoys everything and anything sweet.
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