The London market has launched a simplified system for claims handling in an effort to improve client service and streamline claims agreement across the London market.
The Single Claims Agreement is designed “to enable quick and efficient authorization of claims by allowing policy leaders to agree non-complex payments up to £250,000 [$354,400] on behalf of following carriers,” said a statement issued jointly by the London & International Insurance Brokers’ Association (LIIBA), the Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and Lloyd’s.
Participation in a single agreement arrangement will be optional and considered by brokers and carriers at point of placement.
Under the existing Lloyd’s Claims Scheme, following syndicates are already bound by the decision of the lead Lloyd’s underwriter for “standard” claims within a set class of business thresholds, typically below £250,000. However, a lead agreement model is not typical in the company market, the statement explained, and each IUA carrier has agreement rights to the claim for their proportion.
The new single claims agreement arrangement and the related model will allow the London slip lead to bind all followers on risk, if carriers accept the arrangement and the clause as a policy term at the point of placement.
From an initial idea from LIIBA, this collaboration between LIIBA, the LMA, the IUA and Lloyd’s “will enhance London’s claims service for re/insureds,” said the statement.
It represents a significant step in making the London market more competitive by implementing more efficient working practices, the statement continued.
“The broking community is delighted that we can move forward with the Single Claims Agreement as it will expedite the handling, agreement and payment of small-to-medium-sized losses under London subscription market placements to the benefit of clients,” said LIIBA’S CEO Christopher Croft.
“The single agreement model will make the settlement of claims in the London market more efficient and will offer an improvement in service and customer experience,” emphasized LMA’s CEO David Gittings. “The delivery of a market-wide agreement will become a reality thanks to the collaborative efforts of the LMA, IUA, LIIBA and Lloyd’s.”
“The introduction of an option to provide for a single claims agreement, at the time of placing promises to make the processing of claims in London faster, cheaper and more effective,” according to IUA’s CEO David Matcham.
Lloyd’s CEO Inga Beale said: “In a competitive global sector, customers want and expect the London market to be easier to do business with. By ensuring that the most critical part of our business offer, the resolution of claims, can be done in a more straightforward manner, this will mean London can continue to remain an attractive proposition.”
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