Lloyd's Market Association Bulletin

LMA17-037-LE  |  28 November 2017

Single Claims Agreement Update

During September 2017 the LMA, IUA, LIIBA and Lloyd’s jointly conducted a consultation on their proposals for the Single Claims Agreement Party (SCAP) arrangements. This is the cross-market initiative that seeks to enhance the claims service for customers by streamlining existing London claims agreement models for non-complex claims below an agreed financial threshold.

Details of the market consultation can be found here.

The market consultation was completed on 30 September 2017. On the basis of market feedback, a number of refinements have been made to the proposed Inter-Carrier Agreement (ICA) wording and the Operating Model.

Board approval 

The SCAP framework, proposed operating model and key principles including the £250K threshold is due to be proposed to the LMA Board, IUA Board and Lloyd’s Franchise Board during November and December. Following approval of SCAP by the respective boards, it will be formally launched for adoption by the market. This is intended to take place in January 2018.

A guidance document for the use of SCAP is being prepared and will accompany the publication of the ICA as an LMA model wording. Market training will also be provided for the adoption of SCAP.

Use of SCAP prior to launch

It is important to note that SCAP should not be introduced into placements until it receives board approval and is formally launched for adoption by the market. The LMA, IUA and Lloyd’s have requested that LIIBA ask their members not to introduce SCAP until this time. 

Lloyd’s and the LMA, based on the above, ask both underwriting and claims departments within agencies to be diligent when reviewing contract clauses within placements, particularly during the renewal period.  At this point, SCAP (or equivalent wordings) should not be adopted in placements.  

Lloyd’s managing agents should also note that adoption of SCAP (or any similar Slip Leader only arrangement for claims) without the prior approval of the Franchise Board will constitute a breach of the Lloyd’s Claim Scheme.

Further information

For any question relating to SCAP, please contact Lee Elliston: lee.elliston@lmalloyds.com.

We thank you for the engagement, feedback and support to date and will provide an updated communication following the respective board meetings.


Lee Elliston
Head of Claims Operations