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UK reform forces Lloyd’s wordings review

The Lloyd’s Market Association (LMA) has completed an initial wordings review in light of the new UK Insurance Act, which takes effect in August next year.

Some 373 of the 4000 model wordings recorded on the Lloyd’s Wordings Repository (LWR) are considered high-risk and may require amendment.

A detailed review of the flagged wordings will be undertaken, followed by redrafting.

Non-Marine Manager David Powell, who is leading the project, says the LMA continually updates wordings.

“However, this is the largest review of model wordings in the Lloyd’s market since the LWR was created in 2006. With our members’ help we will be working through the lists of flagged wordings, and ensuring the clauses are brought in line with the Insurance Act.”

Lloyd’s General Representative in Australia Chris Mackinnon told insuranceNEWS.com.au only contracts governed by English law will be subject to the Act.

“On this basis, we don’t believe the new Act will have any impact on the Australian brokers and coverholders,” he said.