The change of Lloyd’s claims management to a “hurdle principle” places the delivery of high-quality claims services among the key fundamental responsibilities of managing agents, positioning it alongside underwriting and governance as a strategic priority, Gallagher Bassett analysts highlight.
Elevating claims management to a “hurdle principle” means that claims performance is no longer just an operational metric; it is now a “pass/fail” gatekeeper for the entire business.
According to Katie Lamb, General Counsel at Gallagher Bassett, this elevation highlights the need for strong claims governance and oversight.
The new framework, effective 1 January 2026, means that syndicate ratings will now be directly influenced by claims handling performance.
“Failure to meet expectations may lead to a range of consequences, including restrictions on underwriting and increased regulatory oversight. However, high performers can expect to see their maturity ratings and market reputation strengthened,” Lamb noted.
Adding: “Managing agents must ensure their practices meet regulatory standards and deliver prompt and fair service to customers.”
Charlotte Harrison-May, Gallagher Bassett’s Head of Carrier and Market Relationships, welcomed the change, viewing claims performance as a core market differentiator.
“The industry now recognises claims excellence as an important attribute, equals strategically with underwriting and governance,” Harrison-May said.
She noted that while the short-term transition may be challenging, optimising the claims journey will ultimately build trust in the supply chain and reinforce competitiveness.
“Looking at the bigger picture, a renewed focus on claims performance could be the key point of difference for the Lloyd’s market,” added Harrison-May.
With the implementation deadline approaching, managing agents face critical decisions regarding whether to handle operations in-house or delegate to a third-party administrator (TPA) to meet the new maturity benchmarks.
Harrison-May noted: “For managing agents in need of the resources to meet the new Lloyd’s maturity benchmarks, Gallagher Bassett offers comprehensive claims consultancy solutions to assist with in-house resource, capability and advisory challenges.”
The implementation of the claims hurdle principle adds pressure to insurers’ growing list of concerns. Charlotte Harrison-May urges those impacted to not lose sight of the true value of exceptional claims service: positive outcomes.
“Lloyd’s principles focus on outcomes, so managing agents need to demonstrate that they’re meeting benchmarks and are constantly looking for ways to improve their service,” she emphasised. “That’s where we can help.”
