Background
Binders remain the largest out-of-scope class in the market. Since ECF was implemented, the market has attempted to deliver functionality that would allow binders to be handled electronically; with delegated business equating to 37% of Lloyd's business.
The Binder Enhancements programme will offer enhancements to address current limitations in the identification of the component parts of binder claims (i.e. the bordereau and those individual claims within that are above authority, cash losses and loss funds). It will also be able to handle the agreement of co-lead claims and master covers.
It does this by providing new functionality to brokers and carriers via ECF, IMR, CLASS and Write-Back services, allowing brokers to enhance their notification of claims to carriers and receive real-time reconciliation data should they wish. Carriers finally get the ‘electronic rubber band’ wrapping these binder claim and transaction types together to improve efficiency, turnaround times and the life cycle of a binder claim.
Next Steps
Work will continue over the coming weeks to establish the plan for eBinders and the ‘rubber band’ solution for verticalised placements. We are working closely with DXC to review the functionality and over the coming weeks we would like to present an overview to market participants from both the broker and carrier communities to ensure what is being built is beneficial. If you would like additional details or to volunteer to be a part of this walk through, please email: ecffocusgroup@lmalloyds.com.