Lloyd's market issues fines and bans agencies

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The Independent Online
The Lloyd's insurance market yesterday fined seven underwriting agencies and excluded five intermediaries from the market, in the first actions under a new system of public censures, writes Peter Rodgers.

The fines of pounds 12,500 were for late submissions of syndicate or agency quarterly returns. Bankside Syndicates and Murray Lawrence and Partners were fined pounds 5,000 each and five others were fined pounds 500. This is the first time fines have been levied for late returns.

The Lloyd's regulatory board also threw five intermediaries, two of them overseas, out of the market for a variety of offences. The firms had access to the market to underwrite for syndicates.

Philip Knight & Co, exceeded the terms of its underwriting authority and Prokor Underwriting Managers (Pty) Ltd "purported to provide insurance in the knowledge that no cover was in place". Coburn Wilson's handling of insurance business "fell short of regulatory standards", Fortress Auto Systems Pty no longer met Lloyd's financial standards and Dobinson Gregory's period of registration had expired.

The announcements came a day before the extended deadline for names to sign up to the pounds 3.2bn Lloyd's rescue plan.