The blueprint for reforming business processes in the London market has been unveiled by the International Underwriting Association (IUA), Lloyd's and the Lloyd's Insurance Brokers' Committee.
The report, called London Market Principles (LMP) 2001, is based on a consultation document published in May which has been amended to take into account extensive feedback.
It aims to promote a common process for claims and post-placement contract changes across both the Lloyd's and company markets.
Organisations in the market will now be asked to sign a letter of intent confirming their support for the principles of the programme.
Companies already signed up to LMP 2001 include Aon, Hiscox and Willis. IUA chairman Tim Carroll said he hoped there would be a critical mass of members within three months. He said critical mass "basically means most, if not all, of the IUA".
Carroll stressed that the reforms were voluntary but added: "We believe that this is absolutely essential to secure our future." The main points of the report include the need for clarity at the point of contact so all parties concerned know exactly who is responsible for doing what and by when.
Another recommendation is the use of a single underwriter, or a predetermined number of underwriters, which will be responsible for all of the administration involved in a risk and for managing the claims process.
Premium payment terms are to be agreed during placing, with consequences for non-compliance clearly set out.
And a London Market Standards Agency is to be established to collect and publish market-wide aggregate data so that participants can benchmark their own performance. Performance monitoring mechanisms are being developed by a pilot group of 12 market organisations.