LeisureInsure, a UK-based leisure insurance provider, has decided to shut down its Irish operations due to unviable business environment.
The decision has put thousands of jobs at risk.
Backed by AXA XL, LeisureInsure was offering coverage to event companies, bouncy castle operators, leisure centres, yoga classes, soccer teachers, drama classes, some play centres and a other leisure firms, reported Irish Independent.
Irish insurers do not want to provide coverage in leisure sector saying that it is too risky to deal with such kind of liability insurance.
Oxford-based LeisureInsure, serving as a management agent for insurer AXA XL, worked with insurance brokers as well as directly with policyholders.
The Alliance for Insurance Reform told the publication that the closure of LeisureInsure will deprive thousands of businesses from insurance cover.
The withdrawal of the insurer will adversely affect play centres, paintballing along with adventure centres.
It is believed that the number of jobs at risk is 4,500.
Peter Boland of the Alliance for Insurance Reform told the publication: “Our hearts go out to the small businesses affected by the LeisureInsure and AXAXL decisions.
“These are friends, families, neighbours with otherwise perfectly viable businesses being closed due to something entirely outside their control.”
A spokesperson for AXAXL, a specialist division of insurance giant AXA, confirmed that the company had reviewed its business in Ireland with LeisureInsure and was pulling out.
“We have concluded that current, well-documented market dynamics mean this business does not fit our business plan going forward. As such we will not be renewing this business with LeisureInsure in Ireland as of August 1, 2019.”