Firms given deadline to produce contract wordings under new code of practice
Lloyd's and London market companies will have 30 days to produce contract wordings under a new code of practice published this week.
The code is part of the subscription market's plan to meet contract certainty requirements laid down by the FSA.
It has been delivered to insurers and brokers along with a list of eight principles giving guidance on how contract certainty should be achieved (see box).
The documents are intended to give a "practical" insight into how underwriters and brokers can agree wordings prior to inception from the underwriting box.
Lloyd's chief executive and chairman of the Market Reform Group Nick Prettejohn urged company boards to adopt the code and implement it at a top level ahead of the FSA's first review of the issue at the end of the year.
He reiterated that Lloyd's would not take responsibility for individual firms' need to achieve contract certainty.
It is understood that the Market Reform Group will publicise the names of firms that have committed to achieving contract certainty at the end of 2005.
Simon Sperryn, Lloyd's Market Association chief executive, said a cultural change was needed at all levels for the market to support the initiative.
He said: "The key to success is agreements to change behaviour at a practical level in the market."
Principles of the contract certainty code
The code proposes eight principles for brokers and insurers to follow, including:
