The company that is helping to develop a single source of wordings for the Lloyd's Market Association (LMA) has said the initiative could be replicated in the composite market.
Risk management specialist ISO is working with the LMA to develop a wordings repository.
The LMA says the facility, which will provide a single source of commonly used model wordings and clauses, will help the Lloyd's market achieve contract certainty.
Kevin Curtis, manager of European Operations at ISO said a similar initiative for the composite market could be successful.
Curtis said: "Model wordings dramatically reduce the policy production time-frames and offer the potential for substantial reduction in legal costs as the scope for policy disputes is significantly reduced: buyers, brokers and sellers all know where they stand. Model wordings also eliminate the need for cover-notes."
The ABI described the idea as "an interesting development" and said it would be willing to talk with interested parties about a single source of wordings.
But a spokesman added: "It is a competitive market and in the commercial market products are tailor-made to particular customers.
"The key point for the insurance market though is to continue its drive towards transparency and clarity and, if this helps the issue, then we would certainly discuss it."
