Ex-finance director and active underwriter ordered to cough up for £145,000 Lloyd’s investigation costs
Lloyd’s has censured two former directors of troubled motor insurer Equity Red Star.
Ex-finance director Douglas Morgan and former active underwriter John Josiah will also have to cough up towards the £145,000 costs of the Lloyd’s probe.
Both Morgan and Josiah have admitted two charges of detrimental conduct to the powerful Lloyd’s enforcement tribunal.
Morgan was rapped for failing to administer the syndicate’s reserves properly, especially over keeping documentation in check.
This then meant that patchy information was passed on to the external actuaries at the end of 2009.
Josiah was also criticised for sloppy administration of the syndicate’s reserves. Furthermore, he failed to provide the Equity board with the right management information and data to keep them on track with the rapidly deteriorating state of its claims.
As reported by Insurance Times, Equity was savaged by the UK’s explosion in credit hire and bodily injury costs. Yesterday, Insurance Times revealed the insurer made a £34.7m loss in 2012.
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