The LMP brings contract certainty to insurance contracts following a move for an LMP Binding Authority slip to include an actual schedule.
An agreement has been reached between brokers and underwriters in the London market on the standard elements of an LMP Binding Authority Slip to be used in placement of US Non Marine Binding Authority Agreements. For the first time, the slip incorporates the actual schedule to the standard binding authority agreement - so delivering contract certainty from the start of the insurance contract.
It is a significant move as the US Non Marine Binding Authorities represent around 50% of the Binding Authority business placed in the London market.
The LMA chief executive Simon Sperryn said: "This new slip template is part of our ongoing development programme for the placing of reforms which are crucial for London's continued competitiveness in the face of global market competition."
Over the coming months, further templates for other standard Binding Authority Agreements, currently in progress, will be published.
Head of Business Process Reform at Lloyd's, Iain Saville, added: "I welcome this further practical step towards contract certainty for all Lloyd's business."