Operations at underwriting agency Dual Australia are operating normally after a tumultuous fortnight involving a $17 million internal claims fraud, the resignation of its MD and changes at the top of the global company.

CEO Asia-Pacific Damien Coates says the financial lines fraud – allegedly committed by Dual Australia’s former national claims manager – has now been fully contained and a review by Ernst & Young of the company’s “control environment” has also been successfully completed.

“Most of the assets involved in the fraud have been recovered, and I’m confident we will manage a full recovery,” he told insuranceNEWS.com.au.

Mr Coates announced last week that he has returned to Australia permanently to resume his role as CEO Asia-Pacific after a two-year stint as CEO of Dual International, during which he substantially restructured the global company.

The new CEO of Dual International is his former deputy, Shane Doyle, who joined Dual in London last year after resigning as CEO of Zurich Australia.

Dual Australia MD Peter Bailey left the company last week, and Mr Coates says the company will now recruit a COO.

He says the local broker market has been “incredibly supportive” since the fraud was revealed. “Our carriers have also been encouraging, and we’re pleased the market understood that policyholders’ funds weren’t exposed at any time,” he said.

“One thing I hadn’t expected was just how hard this fraud would be taken by Dual staff. It’s a close-knit operation, and a lot of staff have been very upset – there’s a sense of betrayal. We have made counselling services available to staff.”

Mr Coates is spending this week travelling around Australia speaking to staff and brokers about the fraud and managerial changes.