Lloyd’s moves on scandals

Press, 8 January 1983, Page 4

Lloyd’s moves on scandals

NZI’A London Lloyd's of London, the world's biggest insurance market has appointed a leading accountant as independent chief executive, after financial scandals.

Lloyd's sain its new governing council had appointed Mr lan Hay Davison as deputy chairman and chief executive after discussions between Lloyds chairman and the governor of the Bank of England. Insurance industry sources said these consultations reflected the disquiet felt by Britain's central bank over Lloyd's scandals, involving about SUSIOO million of reinsurance contracts.

Mr Hay Davison, aged 51. who has served on several British government bodies, told a news conference he had "very clear signals that certain matters have to be cleared up" at Llovd's.

Its problems, which hit Londons reputation as a world financial centre, brought calls for stricter outside surveillance of the often murky affairs of the market's underwriters.

The police had been asked to investigate dealings in which prominent members of the market are alleged to have wrongly profited by sending their firms' business to companies in which they had secret interests.

Lloyds dealt with two episodes of "discreditable conduct." expelling one broker and suspending another.

Industry sources said the appointment, of an independent chief executive, free from financial ties with Lloyd's, to administer the market's self-regulatory powers, would be one way of sustaining Lloyd's independence against calls for external control.