KPMG may avoid Independent battle
KPMG could escape a costly legal battle over the collapse of Independent Insurance because creditors are short of cash.
Creditors of Independent Insurance Group chairman Kevin Young admitted to the Insurance Times that more money was required if the action to recover funds was to proceed.
Young said that there was ‘enough compelling evidence’ to commission a feasibility study into the case, but the group was Pounds 1m short of the total needed.
Soon after the fall of Independent Insurance in June, KPMG was identified as the main target for creditors wishing to recoup losses. The Big Five firm, which was auditor from 1986 until the insurer collapsed, was even told by an MP that it needed its ‘corporate eyes tested’.
In a call to those who had lost money, Young told the insurance trade weekly that it was time ‘people made the decision whether to stand up and be counted’.
KPMG refused to comment on the news but maintained that it had ‘no legal case to answer’.
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