The London market Single Claims Agreement Party Model, a new claims management model that aims to simplify and streamline claims handling, has been launched live into the London market today.
The model is expected to drive significant efficiencies across the market, enabling quick and efficient authorisation of claims by allowing policy leaders to agree non-complex payments up to £250,000 on behalf of following carriers.
Participation in a single agreement arrangement will be optional and can be considered by brokers and carriers at point of placement.
Lloyd’s Chief Executive Officer (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.”
The model is the product of a collaborative effort between LIIBA, the Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and Lloyd’s.
IUA’s CEO David Matcham said; “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.”
LMA’s CEO, David Gittings, added that 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.”
Under the 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 £250k.
However, a lead agreement model is not typical in the company market, 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.
LIIBA’S CEO Christopher Croft commented that 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.”
At the time when the London market is increasingly pressurised to innovate and drive cost efficiencies across its processes in order to retain its global relevance in the long-term, the new model is believed to represent a significant step forward in making the London market more competitive.
