Denbigh and District Probus Club Hosts Insightful Talk on Lloyd's Insurance Scandal
Members of the Denbigh and District Probus Club gathered for their March meeting, enjoying a delightful St David's Day themed meal at Tweedmill in St Asaph. The event featured a compelling presentation titled Lloyd's in Crisis; The Insurance Scandal of the Twentieth Century, delivered by club member Keith Lester.
Keith Lester's Background and Expertise
Keith Lester joined the Denbigh and District Probus Club in 2008 and served on the committee for 13 years until 2023, including as chair in 2019. With a background as a former Name at Lloyd's, he qualified as a Chartered Accountant with Peats, now KPMG, followed by Deloitte. Lester spent over two decades in the insurance industry, working in roles such as finance director and joint managing director of a life assurance group before starting his own management consultancy and chartered accountants' practice.
Historical Overview of Insurance
During his talk, Lester took members on a journey through insurance history, starting with the first recorded transaction in 2300 BC in Mesopotamia. He discussed Roman figures like Marcus Porcius Cato, who engaged in maritime underwriting, and highlighted Edward Lloyd's opening of a coffee shop in London in 1688. Lester also shared stories about the French frigate La Lutine, which sank in 1799 with insured bullion, and its bell now hanging at Lloyd's, rung for news. He noted how events like the 1906 San Francisco earthquake and the 1912 Titanic sinking impacted Lloyd's reputation.
The Lloyd's Scandal and Syndicate 334
Lester explained that Lloyd's of London was highly respected until the late 1980s, when it became embroiled in a catastrophic scandal. For Names on Syndicate 334, policies covering asbestosis claims prior to 1975 were voided, leading to devastating financial losses and personal tragedies, including 11 suicides. Out of 33,000 Names, 15,000 pursued legal action due to suspected fraud and negligence. The legal battle culminated in a 1995 High Court judgment awarding £18 million.
Book Publication and Club Details
Keith Lester has authored a book under his first name Edmund, titled Lloyd's in Crisis, The Insurance Scandal of the Twentieth Century, which details the Syndicate 334 saga. Copies are available via edmundlester.com, Amazon, and other retailers. The next Probus Club meeting is scheduled for Monday, April 13 at Tweedmill in St Asaph, featuring a talk by David Shand Crawford on Wireless in Wales. The club welcomes new members; for more information, visit denbighprobus.com or contact stevetootell@gmail.com.
