1 October 2010 Insurance

Bolt outlines tougher claims approach

“If you don’t meet the service standard, you can’t do the service.” So said Tom Bolt, director of performance management at Lloyd’s, as he unveiled his new approach to claims, which combines an intrusive application of standards and a liberalisation from the requirement to use the market’s current sole service provider.

Bolt, who took up his position at the beginning of the year, is looking to shake up Lime Street and has indicated that he will be imposing firm standards on all its insurers. Targets are set to be published, with Bolt warning that underperforming managing agents could have their claims functions outsourced, or more intrusively “impact on capital requirements and Syndicate Business Plan approvals.”

Bolt has indicated that managing agents will know what is expected of them by mid-2011, stating that by this stage, they will know “how their claims function will be measured and the potential consequences of lead under-performance”.

Addressing Lloyd’s ending of Xchanging’s monopoly as the market’s claims service provider, he indicated that the success of the 2010 pilot had meant that the notion of competitive provision was “out of the bottle”. “The two concepts of the pilot—segmentation and choice—are here to stay,” Bolt said. Nevertheless, Xchanging would remain the “logical provider” of choice for many in the Lloyd’s market.

Bolt’s proposals build on the early stages of the Claims Transformation Programme, which has already helped to reduced average claims periods from 25 days down to 15.7.

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