The Lloyd's market's transition from paper to full electronic claims processing is in doubt, according to the latest figures of the Market Reform Group (MRG).

Only 45% of managing agents and brokers were using the Insurers Market Repository Electronic Claims File (ECF) for claims processing at the end of the third quarter, compared with the MRG's target of 60%. All claims should be processed using ECF by the end of the year.

Lloyd's has vowed to ramp up the pressure on managing agents and brokers that are failing to achieve their ECF targets.

Sue Langley, Director of Lloyd's Market Operations and North America, says the laggard firms are letting down the market and could undermine the progress being made.

She has threatened to carry out a detailed audit on firms failing to meet the targets, saying "poor performance will be acted upon."

MRG Chairman Dane Douetil says brokers and managing agents that fall behind will be at a competitive disadvantage.

"The message is therefore clear to those firms that are not being as quick to embrace the system - do so, or risk being left behind by your competitors."

After two years at the helm of the MRG, Mr Douetil is stepping down at the end of the year. His replacement as Chairman will be Stephen Matanle, Global Placement Leader at Marsh and Chairman of the London Market Insurance Brokers Committee.