General Insurance Article - London Market Single Claims Agreement set to become reality


The development of a Single Claims Agreement Model in the London Market, for non-complex claims within an agreed financial threshold, has taken a significant step forward after gaining approval from both the IUA and LMA Boards, following a proposal from LIIBA and the broking community.

 The proposal is to establish a single claims agreement model which would enable policy leaders to authorise claims up to a certain value on behalf of following carriers. Participation in such agreements will be considered at point of placement.

 The LMA, IUA, LIIBA and Lloyd’s are in agreement with the plan to deliver a single agreement model. Work is now already underway to build the necessary framework to deliver the proposed Model and further details will be communicated to the Lloyd’s and London Market in the coming days. Once the final framework has been published it will be for the parties to the risk to elect to adopt the Model at the point of underwriting.

 LIIBA’S CEO Christopher Croft said: “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 uncontroversial, small to medium sized losses under London Subscription Market placements to the benefit of clients”.

 LMA’s CEO David Gittings said: “The delivery of a market-wide agreement will become a reality thanks to the collaborative efforts of the LMA, IUA, LIIBA and Lloyd’s. The Single Claims Agreement model will make the settlement of claims in the London market more efficient and will offer an improvement in service and customer experience.”

 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.”

 Lloyd’s COO Shirine Khoury-Haq said: “This is further evidence of the London Market’s commitment to modernise and make it easier for our stakeholders to do business with us. Claims is a crucial part of the customer experience and this step reinforces the London Market’s commitment to its customers”.

 At present, business written in the Lloyd’s and London company markets is subject to differing claims agreement protocols. It is estimated that around half the market’s subscription business is written on a cross-market basis.

 Under the Lloyd’s Claims Scheme, following syndicates are bound by the decision of the lead underwriter for ‘standard’ claims within a set class of business thresholds, typically below £250k. However, in the company market, typically insurers are not bound by the lead insurer’s decision and each IUA carrier has agreement rights to the claim for their proportion. The Single Claims Agreement proposal will enable agreement by the slip lead to bind all followers on risk.
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.