Bright defends Independent Insurance audit cover-up claims

The former chairman of Independent Insurance has angrily refuted claims that key details of an internal audit were suppressed.

Along with ex-FD Dennis Lomas and former deputy MD Philip Condon, Michael Bright is accused on counts of conspiracy to defraud and one count of fraudulent trading after the collapse of Independent Insurance in 2001.

At Southwark Crown Court, Bright hit back at claims that the insurer’s management had ‘suppressed’ major concerns highlighted in its 2000 internal audit relating to claims in its London Market business.

Prosecution counsel Andrew Ballie QC told the jury that the report had indicated that only £6.4m reserves were held for £17.7m of claims.

The report was subsequently withheld while amendments were made, but Bright denied the assertion that the report had been ‘suppressed’ from Watson Wyatt and actuary Mark Trayhorn.

Earlier this year, the body's internal audit chief Robin Sibthorpe outlined the extent of the problems at the defunct company, laying much of the blame firmly at the feet of ex-financial director Dennis Lomas. Sibthorpe said he had repeatedly stressed that its 2001 audit should not be postponed.

Bright said: ‘All my efforts in those three years [up to when he left the company] were about making sure that everything that had previously been hidden was out in the open.’

The case continues.