Lloyd's of London insurance market is set to increase a settlement offer to loss making Names, private investors in Lloyd's, in a bid to persuade them to approve a vital recovery plan ford the market.

The current offer of £2.8 billion sterling will be raised to win over the 34,000 Names, individuals who traditionally underwrite the insurance market with their personal assets, Lloyd's spokesman Mr Nick Doak said.

The chairman of the Lloyd's Names Association, Mr Christopher Stockwell, said that unless the settlement offered £4 billion, he would advise the 20,000 Names in the association to reject the recovery plan.