The Australian Financial Review has still not issued a correction to a report last week stating that Lloyd’s Chairman John Nelson had “thrown his support” behind the Federal Government’s plan to allow unauthorised foreign insurers to enter the local market.

The report last Thursday, which caused consternation in the local insurance industry and was widely picked up by industry media overseas, quoted Mr Nelson saying “there is an absolute economic sense particularly for catastrophe risk ... to open markets worldwide to international players and competition”.

However, Mr Nelson was referring to the benefits of international risk diversification. A number of Lloyd’s managing agents have set up operations in Australia in the past few years. All are licensed and regulated in Australia.

A few hours after the article was published Lloyd’s issued a statement saying Mr Nelson was invited by a Fairfax Media reporter to “support the concept of unauthorised foreign insurers being allowed to underwrite catastrophes in Queensland”.

Lloyd’s says he declined because he did not want to comment on a domestic political issue.

“Unaccountably, this has been reported as support for this concept.”

Lloyd’s says a clarification has been sought from Fairfax Media. However, as of this morning no correction or alteration to the article has been made.