For the past six months Nick Furlonge from Beazley has chaired a Lloyd’s market steering group that’s been developing a long term view of how claims should be managed in the market. I am pleased to report that the plans put forward by this group have now received approval from the LMA Board and the Franchise Board.

The vision is to build upon Lloyd’s reputation for fast and fair claims handling and cement claims as a truly competitive advantage for the market.

In order to emphasise the importance of the claims function within individual businesses, several steps need to be taken, such as enhancing current segmentation of claims; introducing choice to manage claims in-house or to outsource; and enabling increased flexibility in notification and settlement.

The recommendations from the group also included strengthening the Corporation’s governance role, developing business system options and implementing a step by step pilot approach.

Implementation of these recommendations, will improve client experience through shortened cycle times; have greater transparency during the claims process; and raise standards in claims management, to mention a few.

In order to deliver on this, a Claims Implementation Board will be introduced – reporting to the Franchise Board – and chaired by myself. It will include members of the Corporation and the market:

• Ian Beaton, Ark
• Nick Furlonge, Beazley
• Sue Langley, Lloyd’s
• Andrew McBride, QBE
• Jeremy Pinchin, Hiscox
• Rolf  Tolle, Lloyd’s
• John Goodbody, Lloyd’s

Market pilots will begin in 2010 and be implemented step by step, with a live roll out only going ahead if the pilot receives full support at its conclusion – which is not expected to be before 2011. Throughout this period Xchanging Claims Services (XCS) is likely to remain the sole outsource provider.

The recommendations have been shared with XCS as our primary outsource supplier of claims handling services and they recognise the market’s need for greater choice and flexibility in claims handling. XCS welcomes the opportunity to become a provider of choice and to develop services to meet managing agents’ needs.

The Franchise Board has agreed to increase the resource available to the Franchise Performance Directorate in order to ensure that the work can be properly supported from the Corporation’s side. However, there is a considerable amount of work to be undertaken and this will require significant market input.

The recommendations are a direct response to market requirements and I ask, therefore, for your support in making appropriate staff available where and when required.

If you have any questions regarding this work then please contact Kent Chaplin.

Tags: Claims