London-based Lloyd’s announced that a comprehensive and consistent form of slip for writing risks will be mandated starting in January 2004.
This new move reportedly will significantly improve business processes within the market by:
• ensuring the clarity and completeness of contractual terms;
• improving the quality of insurance documentation; and
• delivering an improved service to brokers and policyholders
Under the mandate, London Market Principle (LMP) slips will have to include:
• a Unique Market Reference;
• risk details;
• a Subscription Agreement;
• information provided to the underwriter to support the assessment of the risk; and
• fiscal and regulatory details.
Nick Prettejohn, CEO of Lloyd’s, noted, “We are determined to continue to streamline business processes in the Lloyd’s market, and
to ensure that the terms of insurance contracts are agreed and clear before they come into force. Mandating the use of LMP slips is another significant step along this road.
“Our policyholders will benefit from greater contract clarity, which will help to ensure that the whole process of placing insurance and agreeing claims is quicker and more efficient.
“We have consulted widely so that the new approach is supported by market users and associations, reflecting their strong desire to improve market processes.”
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