Michael Bright has resigned as president of the Chartered Insurance Institute after he was forced out of Independent Insurance this week in the wake of its shares being suspended on the London Stock Exchange.
Investors called for the former chief executive to sever all ties with the company as it emerged that new reinsurance contracts had been signed without the knowledge of the board.
Meanwhile, the troubled insurer is facing a desperate bid to raise up to £200m as it struggles to maintain its solvency rating at around 50%.
Bright's immediate duties at the CII will be undertaken by the deputy president, Lillian Boyle, director of corporate services at Scottish Provident International.
But a decision on whether to appoint a new president will be not be discussed until the CII management meeting next Wednesday.
Bright had been due to serve as president until the CII's annual general meeting on September 21.
