The Association of Lloyd's Members (ALM) has demanded that Lloyd's managing agencies put pension deficits in order.
ALM chief executive Anthony Young slammed managing agencies which proposed to use Names' funds to pay the deficits.
He said Hiscox was charging £5m to each of its 2001, 2002, 2003, 2004, and 2005 years of accounts to fund the shortfall. KGM is to take cash from its 2002 year of account, while Kiln is to pay out over the next 20 years.
"Names who happen to be involved with syndicates are going to be facing a very material charge," said Young. "This is a fairly 'negligible' way of doing things."
The ALM has written to Lloyd's auditors and managing agencies questioning whether it was "appropriate for managing agencies to be charging pension deficits differently."
Young said the practice "reflected poorly" on the agency community.
The ALM called for managing agents to instigate a standardised method of dealing with pension deficits- preferably to pay out gradually over the 20 years.
A Hiscox spokesman said: "We will be charging the syndicates pension deficits that relate to syndicate employees."
KGM was unavailable to comment.
