A broker searching for a new insurer for 1,300 childcare facilities clients has told them he has not been able to secure any cover.
The childcare providers are up for insurance renewal on 31 December.
In communication seen by RTÉ News to clients who are childcare providers, Padraic Smith and Co has said it regrets to inform them that despite intensive follow up meetings, they have been unable to secure an alternative insurer for their business at this time.
The company is advising clients to contact Arachas Corporate Insurance Brokers immediately to establish if they would be in a position to take them on as to access insurance with Allianz Ireland.
In a statement, Padraic Smith and Co said in July 2019 it became aware that Ironshore Europe DAC had made the decision to exit the market for International Liability from the end of 2018, which included childcare, but would hold any commitments made to the end of the contracts.
It says that over the last six months, despite conducting meetings and discussions with over 35 different insurance providers, underwriters and intermediaries, the company was unable to secure an alternative insurer who could provide cover to their early childcare clients renewing on 1 January 2020.
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Padraic Smith and Co says that those childcare clients still in contract with them will remain with full cover until their date of renewal, as they remain one of the largest insurance brokers in the childcare sector.
The company says it will continue to explore every possible avenue, with the hope of being able to offer competitive policy options to all crèches and childcare providers across Ireland in the future.
In a statement, Hamilton Insurance Group said the insurance coverage in question was provided through Ironshore Europe's intermediary in Dublin, who contracted with broker Padraic Smith and Co who then sold coverage directly to policyholders.
It continued: "Ironshore Europe made the decision to exit underwriting certain casualty risks in December 2018. This included coverage for childcare facilities.
"The decision to exit this business was made before Hamilton entered into discussions with Liberty Mutual to purchase Ironshore Europe, Pembroke Managing Agency and related entities. This acquisition was completed on August 20, 2019."
It said this decision was communicated to Ironshore Europe's intermediary, who in turn advised Padraic Smith and Co.
It said that Padraic Smith and Co were formally advised on 17 July of Ironshore Europe's exit.
