Global News

Friday July 09, 2010

The Financial Services Authority (FSA) has banned three insurance professionals for fraud.

Timothy Higgins, Clifford Felstead and Ralph Brunswick were involved in a scheme that defrauded Markel International, QBE Insurance and Amalfi Underwriting over an extended period of time, exposing them to significant losses.

At the time, Mr Higgins was a director and founder of Surety Guarantee Consultants (SGC) which wrote a form of insurance known as surety bonds, and employed Mr Felstead.

The firm held binding authorities with the insurers concerned but wrote business that exceeded its authorised limits, exposing Markel and QBE to greater liabilities than had been agreed.

In doing so, SGC made secret profits and withheld over £2 million that should have been paid to the insurers.

When SGC was audited by the insurers it produced false documents intended to show that it had kept within the terms of the binding authorities.

Mr Brunswick provided the false documents in the name of a company located in the Isle of Man, where he was employed at the time.

The FSA’s director of enforcement, Margaret Cole, says: “All three of these men … abused the trust and confidence placed in them by leading London market insurers in order to make a profit for themselves.”

She adds: “This sort of premeditated dishonesty will not be tolerated in the insurance industry or anywhere else in financial services.”