PWC calls for Indie cash

Independent Insurance's provisional liquidator PricewaterhouseCoopers (PWC) has demanded brokers return premiums and commissions on Independent policies, writes Christine Seib.

Brokers have received letters asking for premiums to be returned net of commission on all policies issued by Independent. But PWC has also asked brokers to return commission earned on the unexpired portion of policies that were cancelled on Independent's collapse.

In response, the Creditors of Independent Insurance Group (CIIG) has widened its meeting today (October 25) to include brokers who want to discuss the issue. The CIIG had been due to meet to discuss what form its legal action it would take against bodies involved in Independent's failure.

CIIG chairman Kevin Young's brokerage Argyll Insurance Holdings received a letter demanding the return of commissions on Monday.

"The CIIG should be doing more than protecting existing creditors, it now should be advising on the impact on brokers," Young said.

British Insurance Brokers' Association (Biba) chief executive Mike Williams said he had also received several calls on the issue. He advised brokers not to return any money to PWC without the prior agreement of their client.

"We disagree with PWC's interpretation of the agency agreements," he said.

The CIIG meeting will be held at the Howard Hotel at 12pm.