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The collapse of GBG Insurance Limited in Guernsey could spark significant job losses in America.
It is in administration after discovering that millions in assets shown in its accounts did not actually exist.
The Guernsey Financial Services Commission is investigating how the large hole in its balance sheet went unnoticed for so long.
GBG Insurance Limited is the parent company of Global Benefits Group (GBG), which specialises in private health, life, disability and travel insurance.
Headquartered in Princetown, New Jersey, it has raised alarms about potential mass layoffs as its Miami Branch.
A notice filed at the end of last year warned that layoffs could begin this week, according to reports in America.
GBG’s General Counsel Howard Ehrlich estimated that some 25 employees could go in the first wave of layoffs, with job losses extending through the first half of this year potentially impacting 105 positions in all.
The Counsel said that discussions were happening to protect policy holders and some employees.
How policyholders are affected depends on whether they were directly insured by GBG.
Those who were have been warned by administrators that it is not expected that GBG Insurance Limited will be able to honour the full amount of any claims.
GBG has nine offices across four continents.
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