Plans to modernise Lloyd's and the Company Market have been delayed for a third time.

The London Market Principles (LMP2001) were initially due to be launched by the introduction of new slips used by underwriters to accept insurance risks in July. The slips will now not be implemented until next year.

Joint chairman for the LMP 2001 steering group and deputy chairman for the International

Underwriting Association (IUA), Stephen Riley, said: "Recent events in New York will inevitably lead to some delay. The market will be in an uncertain and fragile state. There will be some aspects of LMP2001, like the new slip styles, which will be deferred until after the January 1 renewal season."

He said introducing the altered policy documents during next year's renewals would be "counter-productive" and the market would have to be "practical" about the impact of the American hijackings.

"Brokers will not want to use something they are unfamiliar with which may fall down," he said.

"This is going to be a progressive implementation and we should be sensitive to the needs of all parts of the market here. We cannot just go on regardless after what has happened."

The original setback centred on concerns over the legality of the slips. Then, in August, fellow joint chairman of the LMP2001 steering group, Stewart McCulloch, said the new documents were still not ready to be used.

He said they were waiting for final approval by the London Market Brokers' Committee (LMBC), IUA and Lloyd's Market Association (LMA).

It is unclear whether the initiative will be renamed LMP2002.