Action 2000, the government-led taskforce tackling the Y2K computer bug, intends to enlist the support of brokers in its Last Chance publicity campaign.

Brokers will shortly receive copies of Action 2000's Insurance Fact Sheet through the trade organisations, the ABI and BIBA, together with copies of its Last Chance leaflet. Both list the final preparations companies should take to counteract the Y2K Millennium bug.

With less than 90 days to go before the end of the year, Action 2000 hopes the move will help brokers explain the potential dangers of the computer bug to their small business clients.

Lyne Povey, regional director of Action 2000 said, brokers' assistance will be instrumental if its campaign was to reach its target small business audience. She said: "Many small businesses have not thought about the wider implications of the Millennium bug problem. They are still treating it as a computer problem rather than a business issue and this has given them a false sense of security."

Povey explained small firms could still be affected by the Millennium bug despite having made all the necessary computer checks.

It might be the case that their own computer systems work but those of their suppliers fail, causing devastating interruption to business. But this message has yet to filter down to around 20% of smaller businesses, Povey said. Insurers, meanwhile, have been given an almost clean bill of health over their possible exposure to the Y2K computer problem.

A report by independent stockbrokers Teather & Greenwood said larger insurers face only a minimal threat from the Y2K problem.

Tim Young, the report's author, believes the bug will not be fatal to most large insurers as they have worked hard to ensure their computer systems are Y2K compliant.

RSA, CGU and Norwich Union have between them spent vast sums – £255 million – on making their computer systems Y2K compliant.

Many insurers have maintained strict underwriting rules to avoid Y2K related liabilities, but Young expects there will be some claims to pay. Lloyd's was also reported to have enforced 'rigorous compliance' by members of its market.

|And Lloyd's Underwriters' Non Marine Association has appointed four firms to lead the legal work on claims arising from the Y2K problem as part of its Y2K Claims Information project.

Barlow, Lyde & Gilbert will manage professional indemnity and financial institutions; Clyde Co, marine; Beaumont & Son, aviation; and Reynolds Porter Chamberlain, property.

Reg Brown will chair the project.

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