Intermediary Servico has fired another shot in its battle with insurer CNA – a High Court writ demanding more than £100,000 in unpaid commission.
It is understood that the dispute centers on CNA's deal to underwrite Servico's clients. The insurer withdrew its cover in January.
Brokers dealing with Servico complained that the intermediary had not told them of CNA's decision and was still writing business.
They were also unhappy that Servico had failed to issue documentation to them (Insurance Times, February 22).
To cope with the fallout from the Servico business, CNA appointed its own global resource managers and the Claims Management Group to oversee underwriting and claims on the Servico account.
CNA's head of European operations, Hugh Morland, left the company quietly at the end of July “by mutual agreement”. It is understood the move was prompted by the Servico dispute.
A permanent replacement has yet to be found and the position is being filled temporarily by Keith Davies, managing director of CNA's global resource managers in London and a director of CNA Europe Holdings.
CNA refused to comment on whether Morland's departure was connected to the Servico case.
Servico director John Layton was also given an opportunity to comment on the case and declined.
The writ was issued on Servico's behalf on July 26 in the Queen's Bench division of the High Court by solicitors Alan Simpson & Co of Rayleigh in Essex. Karl Barnes, who is handling the case, refused to comment.
