The Lloyd's Market Association (LMA) has agreed to review its recent edict on premium payment deadlines for the London Market in a meeting with the Lloyd's Insurance Brokers Committee (LIBC) next month.
The LMA issued a recommendation to Lloyd's syndicates at the end of January to begin applying one of the standard premium payment clauses in the market.
But the timing of the LMA announcement was seen as a snub to the LIBC, which had that week called for an urgent meeting to discuss the problem.
The LMA's quick recommendation was a response to calls by several significant Lloyd's syndicates, such as Markel, XL Brockbank, ACE Global Markets and Kiln, which had already tightened their payment deadlines from 90 to 60 days.
LIBC executive director David Hough said the groups were set to meet in March, after the LIBC had reviewed LMA research on terms of trade around the world.
Hough said he hoped the new terms would take into account the varied methods of doing business in Lloyd's.
“I hope it turns into a sensible discussion and we'll hammer out some agreement,” he said.
Hough admitted any decision would only be a recommendation to the market, with no power of enforcement.
“All we can do is say that we think this is a reasonable outcome, and then individual members can decide what to do,” he said.
