Fortis is to strengthen its corporate governance by establishing an audit committee. The committee will be chaired by non-executive director Steve Broughton.
Broughton, who officially joined Fortis' board last month, will head the committee that will enforce the recent Higgs Report recommendations on directors' responsibility. Broughton already chairs the risk committee that oversees the insurer's compliance with FSA regulation.
"My feelings towards the FSA are neutral. Regulation is here to stay and we must comply, so why fight it? Fortis audit committee will make sure the corporate governance of the company is adhered to on all layers," said Broughton.
He said he joined Fortis UK because he "admired the performance of the company from afar" while head of personal lines at Royal and SunAlliance (R&SA).
"Fortis has the lowest expense ratio in the market, it is stable and is a good business, with £600m premium income a year.
"It also has a great rapport with the broker market, because if a broker has a problem, he or she can go straight to management. They are very approachable."
Since retiring from R&SA two years ago, Broughton has also become a non-executive director at GAB Robins and chairs the trustee committee for R&SA's pension scheme.
