Several proposed solvent schemes of arrangement are on hold in light of a judge's refusal to sanction a scheme last month.

KPMG said that at least one of its pending schemes had been axed altogether, while two more had been delayed until the industry had a chance to "digest the lessons" of the rejected scheme.

A PricewaterhouseCoopers (PWC) scheme for Scottish Lion Insurance is also understood to be on hold until November following creditors' objections.

Experts said uncertainties still remain over the future of schemes of arrangement to bring early closure to claims run-offs.

The proposed scheme for British Aviation Insurance (BAIC), put together by PWC, was rejected by the judge because he said two separate classes of affected creditors should have been able to vote on the proposals. BAIC has appealed.

Earlier this month, a judge sanctioned a solvent scheme for M&G Re, but the creditors were largely made up of re-insurers who raised no objection to the terms of scheme.

Tony McMahon, head of insurance solutions at KPMG, said: "Solvent schemes are not dead, but this will certainly slow the pace at which they come into the market."

Ipe Jacobs, head of financial markets at Grant Thornton, said: "BAIC showed that the judge's decision is not simply a rubber stamp. More and more creditors will challenge proposed schemes in the future."