Creditors of the KWELM companies will next month be asked to vote on ending the runoff of the five collapsed London market insurers ahead of schedule, Business insurance has reported.

Chris Hughes and Ian Bond, the administrators of the KWELM plan, said they want to accelerate the runoff so that the bulk of the $1.3 billion they are holding for payment to creditors can be paid within the next two or three years. The original timeframe for the runoff extended beyond 2015.

As part of the early closure, administrators propose that a "bar date" ? probably September 29, 2004 ? be set for submitting claims.

Under the accelerated runoff, which would reduce administrative costs by about $75 million, creditors likely would receive payments of between 58 percent and 76 percent of the sums owed to them, administrators said.

Creditors will vote on the proposal on Jan. 29, 2004.

The KWELM liquidation was set up in 1993 to run off Kingscroft Insurance Co. Ltd., Walbrook Insurance Co. Ltd., El Paso Insurance Co. Ltd., Lime Street Insurance Co. Ltd. and Bermuda-registered Mutual Reinsurance Co. Ltd.

About 90 percent of the group's 100,000 policyholders are US-based. They were mainly insured for long-tail risks, such as asbestos, pollution and health hazards.

The KWELM companies were the principal members of the H.S. Weavers stamp, membership of which recently led to the liquidation of Bermuda Fire & Marine Insurance.