PracticeConsultingInsurance – Regulators call in PW

Insurance - Regulators call in PW

Regulators at insurance market Lloyd's of London have sent in insurance specialists from Price Waterhouse to examine the financial affairs of troubled broker James Hunt Dix. Phillip Inman reports.

PW has been asked to establish the financial status of the broker following an accusation by the regulator that James Hunt Dix was insolvent.

In particular, PW will check on the position of a claim by the broker that liabilities in its accounts are covered by ‘errors and omissions’ insurance.

The move follows a court hearing last week that allowed the broker to continue trading in the Lloyd’s market and make payments from its insurance broking accounts. The court also forced Lloyd’s to shelve plans to call in the receiver.

Its decision overturned an earlier ruling that the broker should cease taking in new business from 19 February. Solicitor Richard Barton, acting for the regulators, said: ‘We are investigating what is owing to underwriters at large, how they can best recover what is owing and who is liable.’

A spokesman for James Hunt Dix said Lloyd’s had failed to take into account that the liability in its accounts was insured.

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