Most brokers to use new policy

More than 90% of Lloyd's and Company Market brokers could use a new policy document by the end of the year, according to a survey by the London Market Insurance Brokers' Committee (LMBC).

The research was carried out for the launch of the London Market Principles (LMP), which aims to modernise the market by tightening up premium and claims payments.

This month, new LMP slips are being introduced to Lloyd's and the Company Market. The standard form was initially due to be used in July last year, but was delayed mainly over concerns about their legality and due to the World Trade Centre tragedy.

Now a study of nine major London brokers, including Marsh, Aon, Willis and Jardine Lloyd Thompson, said use of the LMP slip could exceed 90% by 2003.

The LMBC said it expects almost 20% of renewals on 1 April to be placed on the new documents, rising to over 60% by September and reaching nearly 90% by the end of this year.

The survey showed that, provided there were no further catastrophe losses, at least 60% of the marine and non-marine brokers and 30% of reinsurance intermediaries would be using the new slips by the January 2003 renewal period.

LMBC chairman Ross McKenzie said: "I am delighted the estimates of usage clearly show the determination of brokers to work with underwriters to provide a more efficient and cost-effective marketplace for the benefit of our clients. I am confident that the underwriters' response will be equally positive."

London Market Association (LMA) chairman Stephen Catlin added: "We have a real opportunity to drive through change for the benefit of the market and our clients. I am confident we will seize the chance."