With the hopes of boosting client service and streamlining claims agreements across the London market, a new transformational model has launched today.
The Single Claims Agreement Party model was formed from an idea from the London & International Insurance Brokers’ Association (LIIBA) and now represents a collaboration between LIIBA, the Lloyd’s Market Association (LMA), Lloyd’s and the International Underwriting Association (IUA). It is meant to make the London market more competitive through efficient working practices and enables quick authorisation of claims by allowing policy leaders to make agreements on non-complex payments up to £250,000 on behalf of following carriers. Participation is optional and can be considered by carriers and brokers at point of placement.
“In a competitive global sector, customers want and expect the London market to be easier to do business with,” said Lloyd’s CEO Inga Beale. “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.”
Under the Lloyd’s claims scheme, following syndicates are bound by the decision of the lead Lloyd’s underwriter for “standard” claims within a set class of business thresholds, typically below £250,000. This new single claims agreement, however, allows the 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.
According to LMA’s CEO David Gittings, the model “will make the settlement of claims in the London market more efficient,” while the IUA’s CEO David Matcham added that it will make the “processing of claims in London faster.”
“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,” added LIIBA CEO Christopher Croft.