Independent Insurance's bankrupt former chief executive Michael Bright and his fellow directors could be off the hook as the company's creditors target actuary Watson Wyatt and auditor KPMG in its legal action later this month.
Kevin Young, chairman of the Creditors of Independent Insurance Group (CIIG), said he was prepared to allow
the liquidators and the Serious Fraud Office (SFO) to pursue the board of directors. The CIIG feels the external auditors are in a better position to compensate its members.
"We feel the SFO and the liquidators are pulling together information and will take the necessary action against the directors. We are more interested in getting our members' money back and the external auditors are in a better position to pay," said Young.
The CIIG is proposing to put the findings of its feasibility study to its members by the end of October.
"We are now in a position to advise our full membership details on the possible claims we can make through the High Court proceedings," Young said.
He said arrangements were being made for two meetings - one in London on October 25 and the other in Manchester the following day - so that all members could attend.
Stephen Alexander of Class Law said the emphasis of the evidence and the action would be aimed at Watson Wyatt and KPMG.
Young said the Queen's Counsel had given a verbal confirmation that "more than one defendant" would have action taken against them. The study gave the group an "extremely strong case", but he admitted extra evidence was needed to secure a definitive case.
"The difference with Independent is it was an insurer that employed an external actuary to verify claims on its reserving policy," he said.
Once the final evidence is in place, which Young said is only weeks away, legal proceedings will begin.