November 2018

Automated processing for bureau leads under Single Claims Agreement Party (SCAP) goes live

Following on from the implementation of  SCAP from 1 February 2018, the delegated and automated processing of SCAP claims for a Bureau Lead (Follower) following slip lead agreement has gone live on 24 September 2018. 

Background

SCAP is the London Market initiative to develop a more effective process for the settlement of lower value, non-complex claims (£250,000 and below) where multiple London agreement parties exist. It is a contractual arrangement to delegate sole claims handling responsibility to the Slip Leader (which must be a London Market carrier).

The implementation of the SCAP Clause (LMA9150) in February was coupled with a tactical operational solution to process the claims through the bureau systems. A TOM working group was then created to look at short term and long term solutions, and the related deliverables to support the SCAP clause. The directive for this group in the short term was to identify opportunities and a tech solution that will alleviate the operational burden that the tactical solution has on brokers and carriers, therefore collapsing the agreement chain and claims touchpoints operationally, in alignment with the model clause.

Implementation Update

DXC have implemented a delegated processing service for all SCAP followers, via both an automated / RPA (robotic process automation) and FTE supported model. This model will accelerate the agreement and processing of claims, whilst following the actions of the slip lead. It continues to allow followers full visibility of the claim throughout its lifecycle whilst also providing the ability to intervene with both the lead or DXC as required.

The cross market working group have worked hard to establish the rules, process and required technology as a fast follow to the go-live of the SCAP clause (LMA9150). The market working group will continue to work with DXC and a 3rd party RPA specialist to leverage the automated tech and process to support SCAP as volumes of SCAP claims increase.

For more details regarding what this means for carriers, please click here (add 1 pager from comms).

All supporting documentation for SCAP, including the operating guidelines, can be found on the London Market Group website.

Benefits of the automated solution

  • reduces the burden on SCAP bureau lead followers
  • eliminates re-keying and the re-adjustment of a claim for processing purposes only
  • accelerates claims agreement and processing
  • accelerates SCAP claims settlement
  • enables a centralised quality control process to occur real time reducing the delay caused by queries or intervention within the claims lifecycle.