LONDON: Two insurance companies, Aviva and Phoenix Group, quit the Confederation of British Industry on Friday as a fresh media report about abuse allegations involving staff members deepened a crisis at the leading business group.

The CBI, which says it represents 190,000 businesses in the United Kingdom, could face a battle for survival if there is an exodus of members in the wake of the scandal.

Many of those members, which include Britain’s biggest corporate names, are waiting for a law firm’s investigation into the allegations, results of which are expected to be published later on Friday, before commenting.

But for Aviva the allegations so far are serious enough for it to end its membership of the lobby group immediately, even as a police investigation is ongoing.

“In light of the very serious allegations made, and the CBI’s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK,” an Aviva spokesperson said.

Phoenix Group said that the additional allegations were the final straw, following the British Insurance Brokers’ Association which has already cut ties with the CBI, the Financial Times reported on Monday.

Last week, the City of London Police opened an investigation into what the CBI called “a serious criminal offence” after the Guardian newspaper said a female member of staff had claimed she was abused by a manager at an office party.

Since then the Guardian has reported claims by a second woman that she was also the victim of abuse by CBI colleagues.

The CBI last week sacked its director general Tony Danker for what it said was conduct which fell short of what was expected from someone in his position. His departure was not linked to the criminal allegations, the Guardian reported.

In a statement published on Friday, the CBI said an urgent root-and-branch review of its culture was proceeding.

“While the CBI was not previously aware of the most serious allegations, it is vital that they are thoroughly investigated now and we are liaising closely with the police,” CBI President Brian McBride said.

“The board will communicate its response to this (the independent investigation) and the other steps we are taking to bring about the wider change that is needed early next week.”

Britain’s biggest retailer Tesco said last week it would wait for the findings of the law firm’s report before commenting, a plan echoed by asset manager Abrdn on Friday.

“Like other members, we await the outcome of the current review, and look forward to understanding the CBI’s plans for dealing with the issues that have emerged,” an abrdn spokesperson said. – Reuters