Following significant progress in 2012, Lloyd’s Claims Transformation Programme aims to deliver further improvements to the market’s claims processes in 2013, including a claims-reporting tool and a portal for brokers.
Lloyd’s is in the process of implementing its Claims Reporting Suite(CRS), an exciting new tool that is designed to enable managing agents to access a wealth of claims data and so compare their own performance against the market average.
“There is a huge amount of claims data in the market that is not used to its full potential,” says David Lang, head of Claims at Lloyd’s. “Making this data available in one system is one of the best ways we can improve performance,” he says.
CRS aims to provide one transparent source of claims data to the whole market. Initially, managing agents will be able to access ten reports, but future enhancements could make even more data available.
“By providing the market with a common set of claims reports we can help raise the market’s performance in terms of the claims process,” says Lang.
The reports summarise a managing agent’s own performance but also the market average, so that both absolute and relative performance can be determined. Managing agents will also be able to identify issues of concern and resolve them far more quickly.
Unlike the current performance reports, CRS will be updated daily and will be accessible at any time via the internet. It is also much more interactive–for example, managing agents can drill down and look at performance issues at the level of individual claims.
The first ten reports are due to be delivered between March and May 2013.
CRS is just one of many parts of Lloyd’s Claims Transformation Programme (CTP), which is changing the way the market handles the more than 200,000 claims that are in the market at any one time.
The programme is now very much in the implementation phase, says Lang. In July 2012, Lloyd’s introduced a triage system that is speeding up the processing of simple claims, while at the same time diverting resources to more complex claims. 2013 will see further enhancements and changes to claims, he says.
For example a new portal is currently being built for brokers and should be ready for its first pilot in the first half of 2013. The portal is being designed to act as the market’s entry point for claims, enabling brokers to submit all claims to Lloyd’s via one system. The system will automatically check and validate brokers’ claims submissions–so reducing data entry errors, which are a major cause of delay.
Another CTP initiative for 2013 is the proposed change to how the market manages volume claims. This project is a work in progress, but it could potentially see simple volume claims managed on behalf of multiple managing agencies more efficiently via one central process.
Lloyd’s is consulting with the market to accurately define the potential service.
All the pieces of the CTP will mean faster and more effective claims handling, while initiatives like the CRS are designed to help Lloyd’s continue to refine and enhance the claims process to the benefit of policyholders, says Lang.
For example, major catastrophes like Sandy, which caused havoc as it swept up the US North East Coast in October 2012, affect the lives of individuals and businesses that rely on insurance pay-outs to get back on their feet.
“Policyholders want to know if they are covered and get clarity around the applicable indemnity amounts as soon as possible,” says Lang. “CTP should speed up the processing of straightforward claims and enable managing agents to understand the changing dynamics of claims,” said Lang.
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