Market Reform Contract – Change and Guidance

Market Reform Contract (Open Market) Guidance - new version 2.1

In accordance with previous practice, a cross-market group has carried out the annual review of the Market Reform Contract (Open Market) Guidance. This has resulted in the publication of a new version (v 2.1) of the Guidance.

The following changes/clarifications to Guidance have been applied:

Guidance under “Considerations When Using Electronic Placing” (3.4) has been updated.
Guidance under “Basis of Claims Agreement” under the SUBSCRIPTION AGREEMENT has been amended to align with the re-launch of SCAP.
Additional guidance on “UMR” (A.1)
Additional guidance on “Order Hereon” (C.2)

The revised Guidance can be used immediately but may also be phased in over a four-month period, hence becoming the required standard for new and renewal business from 01 August 2021.

Market Reform Contract (Open Market) Change - SCAP

In support of the above and with reference to the SCAP (Single Claims Agreement Party) clause (LMA9150), please note that this is now a part of the MRC guidance in full, which is a change from previous publications whereby SCAP and LMA9150 were referred to, to enable the related clause to be added or appended to the contract.

Underwriters and or Brokers who are not willing to utilise the SCAP “Basis of Claims Agreement” will be required to remove the clause from the contract.

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All MRC publications are available to access on the LMG website under “Market Standards”.

All managing agents’ queries arising from these documents, should be directed to David Powell at the LMA.

David Powell
Head of Technical Underwriting