Advent
Claims to deliver the Claims Expert Management Hub
Project Background
The LMA Claims Committee (LMACC) is supporting the delivery of a Claims Expert Management Hub which will deliver key benefits to Lloyd’s carriers and address gaps that currently exist in relation to the data capture of expert spend, management of claims leakage and oversight and management of claims experts (professional advisers and third parties instructed to provide claims related services to a carrier on a claim by claim basis, such as loss adjusters and lawyers). The gaps that exist today predominantly relate to:
- Data capture and reporting of expert spend. The inability for managing agents to accurately track their spend with claims experts, from budget and spend with multiple experts to tracking that spend and their performance against the indemnity, outcome and customer experience.
- Oversight and management of expert performance. The ability to demonstrate adequate on-boarding, oversight and management of claims experts whilst supporting the appointment and selection process and measuring performance against outcome, agreed service levels and your claim philosophy.
Approximately £1billion has been paid to experts in the past 24 months, which highlights the usage and spend with experts across the Lloyd’s market without a consistent level of data and reporting.
Without the data on claims expert spend, managing agents (MAs) could be making uninformed decisions on the appointment and continued provision of claims experts, which may well result in unnecessary spend, or lack of management oversight of those experts.
The Lloyd’s Minimum Standards (MS2) for Claims Management requires MAs to demonstrate control of all third parties. Sections CLM6.2 and CLM 6.3 identify those requirements for the appointment and ongoing management of external experts. This includes selection based on performance, agreeing budgets, and validating fees based on agreed fee scales. The delivery of this project will provide the data and oversight that will allow an MA to demonstrate adequate control of claims experts.
Progress to date and the RFP process (June – October 2017)
Following LMACC approval to proceed with the RFP phase of the project, and following our previous market communication on 28 June, 11 potential vendors were invited to respond, of which seven vendors responded formally. A market working group of 24 claims professionals with representation from 15 MAs was formed to oversee the vendor selection process. Following a scoring exercise of each written response, four vendors were taken through to the secondary RFP stage which following a detailed review of solutions and proposals in addition to due diligence, two vendors were taken forward for final consideration.
That final consideration required the market working group to recommend a preferred vendor and solution to the LMACC for consideration and approval. A recommendation was made to proceed with Advent Claims (Advent Insurance Management Ltd) based on:
- product design, technical capabilities and the flexible and agile nature of the platform
- exceeding market and project requirements in relation to scope and key deliverables
- partnership approach and vision to serve the market on a long term basis, including a low cost and flexible approach to change
- professional approach, engagement and partnership delivery, supported by technical expertise with significant market knowledge/experience
- service support approach, on-going management and resource
- within agreed and recommended implementation and run costs.
Approval
The proposal was presented to the LMACC on 1 November 2017, and has subsequently been approved, with Advent Claims having been selected to deliver the Expert Management Hub in collaboration with the market.
What the approval means:
- LMACC centrally funded implementation (£350,000)
- LMACC sponsorship and oversight of the project delivery
- Central Service changes, i.e. ECF to support the structured data capture within the claim management process (funded by the ECF budget)
- integration between ECF and the Expert Hub
- service run costs will be funded by an annual carrier licence fee via a central market contract (approximately £3,362 per MA).
Next steps & timeframes
We will hold back from initiating the delivery phase until February 2018, due to CAT related claims volume and year end activities.
In the interim the LMA will arrange a series of meetings with Advent Claims throughout December and January to commence the contract drafting phase and agree the 2018 project delivery plan, with an intended initial launch of the Expert Management Hub in Q3 2018.
The creation of project workshops which will include full consultation with all relevant sector groups to gather functional and non-functional requirements will occur in Q1 2018.
Engagement with the IUA and their members will also occur between now and February 2018 to explore their appetite to utilise the product and service being delivered.
If you have any questions, or wish to get involved in the project workshops in 2018, and ultimately have input to the final design and functionality of the product and service, please contact Tim Bowling at the LMA on 020 7327 8338, tim.bowling@lmalloyds.com.