SFO probes failed insurance group

Adam Feeley Serious Fraud Office (SFO) chief executive Adam Feeley. 12 October 2010 Photo / Dean Purcell

The Serious Fraud Office has launched an investigation into failed insurance broker Herbert Insurance Group, which was placed in receivership this month.

SFO Director, Adam Feeley, said the office was investigating concerns about an apparent shortfall in the group's account, which hold clients' premiums.

"It appears that some client premiums may not have been passed on to the insurers, and may have been diverted for other purposes," he said.

Feeley said the SFO was working closely with receivers, Korda Mentha, to identify all information relevant to the investigation.

"Our role is to ensure that any evidence of possible offending is secure, but it is not possible for us to give clients of Herbert any information as to the status of their insurance."

Herbert Insurance Group's client base of about 4000 has been sold to Aon New Zealand.

- NZ HERALD ONLINE