Lloyd's should start gearing up to pay Equitas claims, according to a new legal textbook published by barrister Richard Astor.
Astor's Equitas Re Handbook is the first book written about the law of Equitas, the Lloyd's reinsurance operation.
The 570-page book claims to demolish the "myths" surrounding Equitas.
The textbook explores various issues, including whether Lloyd's has an effective ring fence against Equitas liabilities and whether Equitas Names are vulnerable to suits being brought against them personally by policyholders.
Astor said: "Lloyd's insists there is a valid ring fence between the Lloyd's enterprise and the policyholder in relation to pre-1993 liabilities.
"On closely examining all the legal instruments, including the new Central Fund by-law, I have concluded that the ring fence is not legally effective to protect the Lloyd's enterprise from any of those liabilities."
If Astor's claims were found to be true, he said, Lloyd's would need to start gearing up to pay Equitas claims.
When contacted Lloyd's said it could not comment on Equitas issues.
A spokesman for Equitas said he had not been provided with a copy of the book and so could not comment directly on the material in it.
