London Market simplifies claims handling
A single claims agreement party model has been launched aiming to simplify how claims within the London market are handled.
The process will enable quick and efficient authorisation of claims by allowing policy leaders to agree non-complex payments up to £250,000 on behalf of following carriers, according to a Feb. 1 Lloyd’s Market Association (LMA) press release.
Participation in a single agreement arrangement will be optional and considered by brokers and carriers at point of placement.
The move represents a significant step in making the London market more competitive and enhancing its position at the centre of the international insurance industry through the implementation of efficient working practices, according to the LMA.
Christopher Croft, CEO of the London & International Insurance Brokers’ Association (LIIBA), commented: “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.”
Lloyd’s 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.”
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.
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