Aon has told reinsurers that it will not open any new paper claims files.

The broker said it had taken the step in order to increase the efficiency and auditability of claims.

Executive director Phil Tyson said: "Our policy for the 2003 underwriting year is that we won't create new paper claims files for our reinsurance business.

"It increases business efficiency and speeds up payment of the claim - and leads to more auditable claims."

Tyson said the response from reinsurers to the announcement had been "very good", though he added that if a reinsurer insisted on opening a paper claims file, Aon might consider it. But he reiterated that Aon's policy was not to do so.

Aon, which uses August Group's Advance repository, recently issued a stark warning to the London Market, saying that some leading insurers and brokers businesses were suffering because of inadequate nternal systems.

"We won't enjoy the benefits until the major players embrace the technology," said Tyson.

The move towards electronic claims filing is gathering pace following the announcement, made by the LMP programme office, that a new electronic claims file (ECF) for the London market will go live by 2004.

The ECF, a central plank of the London Market Principles (LMP), is being devised by the London Market Brokers Committee (LMBC), Lloyd's and the IUA.

But a leading supplier of repositories to the London market urged brokers and insurers not to wait until 2004 for the launch of the ECF.