Lloyd's has announced plans to put in place a new stop-loss protection on the Central Fund from 2004.
Lloyd's commercial director Roger Sellek raised the agenda at the Houston Insurance Seminar. He confirmed that Lloyd's is already in negotiations with carriers to put together a new programme for the Central Fund.
Lloyd's are currently examining several options for the fund, including a capital markets solution and a finite cover.
The agreement would also be limited to those carriers with a double or triple-A rating, he said.
The protection offered by the fund was activated at the start of the year when Lloyd's faced liquidity problems due to September 11 losses.
The current fund is operated by Swiss Re, Employers Re, St Paul, Hannover Re, XL Mid Ocean Re and Chubb.
In response to concerns over further Lloyd's reform, Sellek said there were no plans to change the system of mutual security.
