Brokers expect to use LMP slips for 95% of business

Only a small minority of open market business will be exempt from the requirement to use LMP slips, new research has revealed.

The research from London Market Principles (LMP) Programme Office showed that brokers expect to place 95% of their open market business to LMP standards.

Only 5% will fall under the exemption allowed by Lloyd's rules, where the broker declares that the slip format is outside the control of the London broker.

Lloyd's head of business process reform Iain Saville said: "This research clearly shows the scope of business that can be written using LMP slips and demonstrates the commitment by brokers to LMP and to improved contract certainty.

"We now need to continue to push for a higher standard of compliance for these slips. Contract certainty is valuable and it provides a firm basis for better, faster and cheaper post-placing administration."

The LMP slip was mandated by the Lloyd's Franchise Board on 2 January 2004.