A review of the wholesale insurance market will be carried out by three senior members of the London insurance industry.

Lloyd's chairman Lord Levene, together with Andrew Kendrick, chief executive of Ace European Group and chairman of the Lloyd's Market Association (LMA), and Willis Re chairman Grahame Millwater will form part of a review group.

The group will help to promote reforms to the wholesale market.

Ed Balls, economic secretary to the Treasury, told the ABI's Saver Summit: "The aim of this review group is to support the modernisation of London's wholesale insurance and reinsurance markets to match developments in other parts of the wider financial sector.

"At the same time, the Treasury is examining the business environment for the wholesale insurance sector."

The group has been set-up following the first meeting of a high-level City group, chaired by Chancellor Gordon Brown.

Levene is one of 32 senior financial services figures on the committee, which intends to set out plans on maintaining the City's position as the world's leading financial centre.