The prospect of legal action by Independent Insurance creditors came a step nearer with the formation on Tuesday afternoon of an action group. Provisionally called Creditors of Independent Insurance Group (CIIG), the acting chairman is Kevin Young of Argyll Insurance.
The group – to be run by a committee of about ten members – aims to represent all classes of creditors:
Stephen Alexander, partner of coordinating solicitors Class Law, said: “The first step is to get leading counsel's opinion on whether fraud can be established and, if so, what claims that opens up and against whom.
“Without fraud, there may still be claims against the directors and against professional advisors.”
Auditors KPMG are thought to be a potential target to sue. It's a matter of what questions a competent insurance auditor could and should have asked. Alexander said if KPMG fell short on this test, there was a potential liability.
The action group plans to set up a website to answer questions. “Many people want to ask exactly the same question,” Alexander said. “Having questions emailed to a website cuts down the number of individual questions by 90%.”
If legal action is contemplated, the action group is likely to look for after the event insurance.
There will be a preliminary meeting for creditors and shareholders at 3pm on Monday July 2, at the Howard Hotel, Temple Place, The Strand, London WC2.
Insurance Times is calling for people with any information to email us at email@example.com. Class Law can be contacted on 020 7724 2526.