claims quarterly newsletter > regulatory  
April 2019

SCAP Volume & Performance Analysis  

The Single Claims Agreement Party (SCAP) went live in 2018. Since go-live (and 12 months on) we have analysed the usage of SCAP within the London Market and identified the most common trends.

Volumes

To date there have been 2,015 SCAP claims with the breakdown by Class of Business being:

Class of Business

Claim Volumes

Accident & Health

31

Aviation

240

Aviation Hull

21

Aviation Liability

31

Casualty Treaty

5

Energy

37

FinPro Casualty

607

Marine

280

Marine Cargo

15

Marine Energy

1

Marine Excess Of Loss

3

Marine Hull

20

Marine Liability

1

Non Marine Direct Facultative Insurance

140

Non Marine Facultative Reinsurance

59

Other Casualty

212

Other Specialty

4

Property (D&F)

182

Unknown

462


The Lloyd’s risk codes are used to derive the Class of Business as the 3 bureau systems do not capture this information in the same way.

The breakdown by SCAP Slip Lead is as follows: 

Slip Lead Bureau

Claim Volumes

ILU

153

LIRMA

285

Lloyd's

1,298

Non-Bureau

221

Unknown

102


The ‘Unknown’ SCAP Slip Leader is where the broker hasn’t provided the full SCAP prefix by omitting to include the bureau / non-bureau character. DXC provide an exception report to the broker when this scenario occurs to request that the broker updates the prefix on the next transaction. 

Completion Times

The time to complete a transaction by Slip Lead is as follows:

 

On average, Lloyd’s SCAP Slip Leads complete transactions within 4 days, ILU 5 days and LIRMA is 6 days. The majority of the transactions are post implementation of DXC automation in September 2018.

Further investigation is to take place to understand why there is this discrepancy in processing time when ILU leads.

The time for Bureau Lead Follower to complete where the Slip Lead is Non-Bureau or Unknown is significantly higher. A third of these transactions are in excess of 5 days to process.

Further investigation in to what is causing these delays will be completed to determine if there are any common issues that can be rectified to improve this going forward.

In Q1 2018, the ECF Best Practice Group completed an analysis on average time to complete transactions by Class of Business.

A comparison has been completed for the average transaction completion time of SCAP claims and it is pleasing to report that there has been improvements in all classes with an average reduction in completion times of 3.3 days across all classes:

Class of Business

Pre SCAP

SCAP

Accident & Health

8.9

4.8

Aviation

11.9

9.0

Casualty Treaty

7.6

5.1

Energy

10.6

7.6

FinPro Casualty

8.7

6.4

Marine

8.8

7.6

Property (D&F)

8.5

5.8

Overall Average

9.3

6.6


Volumes by Broker

The below table shows the claim volume by broker: 

Broker Name

Claim Volumes

MARSH LIMITED

1,138

WILLIS LIMITED

646

JLT SPECIALTY LTD

61

AON UK LTD

57

THOMPSON HEATH BOND

21

LOCKTON COYS LLP

20

FABER GLOBAL LIMITED

17

GALLAGHER GROUP

13

RFIB GROUP LIMITED

8

RKH SPECIALTY LTD

8

LLOYD AND PARTNERS

6

UNITED INSCE BKRS

4

BMG INSURANCE BKRS

3

INTEGRO INS BRK LTD

3

BUTCHER ROBINSON INT

2

ED BROKING LLP

2

MILLER INS SERVICES

2

TYSER & CO

2

C R MARINE AND AVN

1

CHARLES TAYLOR

1

HAYWARD AVIATION LTD

1

LONMAR GLOBAL RISKS

1

UNIQUE INSURANCE

1


It is evident from these volumes that the majority of brokers have not adopted or have limited adoption of SCAP. It is not understood at this time if it is because their claims handlers aren’t checking for the clause to notify the claim under SCAP or if the clause isn’t being put in the MRC’s by their placing teams. This is being is raised with LIIBA. Of the higher volume brokers, the use of SCAP is across multiple classes other than for Gallagher Group which only has SCAP claims for Marine.

Conclusion

SCAP volumes are increasing month on month but the adoption of SCAP hasn’t been as quick as it was originally anticipated and the analysis suggests that it is not being used by many brokers.

When a claim has been handled as SCAP, there is evidence to show that it does reduce the end to end completion time and therefore has a positive benefit for the client as intended.

Therefore, increased adoption will provide the benefits originally sought to improve the lifecycle of high volume /low value claims.

Bulletins

DA SATS Endorsements
[LMA19-012-TH3/21/2019] DA SATS was launched in late 2018 as a platform to assist the market to manage bordereaux information and data gathered under binding authorities.

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Blogs

A Satellite View of Enhanced Claims Service
[A satellite view of enhanced claims service11/26/2018] LMA's James Wilson explains how the satellite service used during recent wildfires and hurricanes enabled Lloyd’s insurers to make early part or full settlement of claims. He also talks about potential future service enhancements.

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