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Eric receives interest from buyers as run-off continues 

Motor add-on specialist Eric Insurance says run-off of its portfolio is on track and it has received unsolicited expressions of interest to buy the business. 

In January, Eric notified almost 15,000 customers after personal information on a database was exposed to cybercriminals. It had issued comprehensive motor cover for several years, plus warranties and consumer credit insurance sold through dealers. 

Chair Paul Myers told today that run-off is meeting expectations. 

“The comprehensive motor portfolio claims are all but gone, with the major activity on that portfolio being pursuing recoveries due to Eric,” he said. 

“This leaves us with the run-off of short-tail classes such as mechanical warranty, tyre and wheel, and various automotive finance products.

“We are well positioned to continue to manage that run-off until its natural conclusion in 2032 or to consider a sale of the business, or transfer of the portfolio to another insurer at any time.” 

The Eric website was hacked between Christmas and New Year by an external party believed to be based in Bulgaria. Data potentially compromised was mostly limited to first and last names, email addresses, phone numbers and/or dates of birth.  

The breach was identified by Eric’s information technology team on January 5. The hacker was unable to access core systems but reached information provided by customers through online forms, such as address changes, claims lodgments and policy cancellations.

Eric says there have been no ransom demands or indication that customer data is on the dark web.

External experts have helped investigate, build a new website and strengthen information security.  

“We had a relatively small number of customers contact us in relation to this incident and we have provided support as needed,” Mr Myers said. “We regret that this happened. It is a salient reminder that cybercrime is an ever-present threat to us all.”