UK insurance company collapses into administration – in business since 1997
An insurance company in business since 1997 has collapsed into administration. Based in the heart of the City of London, W.I.S.E. Underwriting Agency Ltd described itself as one of the oldest managing general agents in the capital.
Daniel Conway and Anthony Simmons of FRP Advisory Trading, along with David Farmer of Birchwood Bond, have been appointed joint administrators to manage the company's affairs. In a statement on the home page of W.I.S.E.'s website, the company says it has "ceased all trading and regulated activity".
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Customers are also advised to "remain alert" to the possibility of fraud and urged to "exercise caution" if they are contacted by someone claiming to represent the firm, administrators or Financial Conduct Authority.
The company hailed itself for having a "deep understanding" of marine cargo insurance, offering services on risks, loss or damage and specie insurance, which is designed to protect high-value assets.
Its director was David Earl, whose bio on the company's website says he built a long-standing career at the Lloyds Claims Office and was a senior adjuster in the mid-90s.
Paul Marsden was a senior underwriter at the firm. He began his career at Sun Alliance and worked in Singapore, according to his bio.
Birchwood Bond and FRP Advisory have been approached for comment.
News of the company entering administration comes amid a wider upending of marine insurance in the wake of the United States and Israel's war with Iran.
Tehran earlier in June said ships would have to seek permission to use the Strait of Hormuz and raised the prospect of future charges. Iran's stranglehold on the sea route has disrupted global oil and gas supplies and driven up fuel and food prices.
The Persian Gulf Strait Authority, a Government agency set up by Tehran during an earlier ceasefire to control the strategic waterway, said previously that vessels would have to submit requests at least 48 hours in advance to pass through the channel.
It said admin tariffs, including for "related Iranian insurances", would be waived during the 60-day negotiation period, leaving the way open for fees being levied at a later date.
This was an effort by the Islamic Republic to impose Iranian-approved insurance as a condition of passage through the Strait. The waterway lies within Iran and Oman's territorial waters, but is deemed an international route through which foreign vessels should be allowed to pass without obstruction.
Sheila Cameron, CEO at the Lloyd’s Market Association and Neil Roberts, its Head of Marine and Aviation, said previously that shipowners and insurers will need "stability and certainty" to recover from the war's impact.
They said in a joint statement: "The road to recovery in the Gulf will be a long and complicated one."