Claims Modernisation Key to Maintaining Reputation
Lloyd’s is renowned for its specialist underwriting expertise but ask a client to name what they value the most, and they are likely to answer “rapid payment of claims”. The prompt and reliable payment of valid claims is key to our ongoing success. Claims is a key touchpoint with our customers and delivery here is essential.
For this reason, further modernisation of claims management and the related technology should not fall behind our ongoing efforts to modernise underwriting. The Lloyd’s claims community has led the market in driving change and innovation in claims over the last few years. We are seeing a willingness to adopt technology and streamline procedures. The LMA Claims Committee (LMACC), comprising Heads of Claims from managing agencies, has been working hard to drive forward improvements in the claims area at Lloyd’s, and in the wider London market, and has achieved some considerable successes.
The highlight among them is the London market’s new Single Claims Agreement, which will go live in January once it has received approval from the LMA Board, IUA Board and Lloyd’s Franchise Board. It allows the London leader of cross-market contracts to agree non-complex claims up to £250,000 on behalf of following carriers. It will bring valuable efficiencies and allow us to meet our commitments to customers more quickly. That said, the delivery of the Single Claims Agreement model is bringing a modern concept to claims management in London, while the changes that need to take place to ensure the technology is available to support this claims agreement model are essential and need to be prioritised.
A second step forward on the claims front is the LMA’s new Claims Expert Management Hub. The technology and resource, to be delivered by Advent Insurance Management, will assist with the assessment and management of experts such as lawyers and adjusters throughout the life of a claim, while improving and enhancing data on claims spend and leakage. It will also deliver customer and carrier benefits: improved data, performance oversight, efficiency gains and better service for policyholders.
The market’s new Satellite Imagery and Intelligence Service, developed by the LMA and Lloyd’s, was tested to support the response to HIM. The service and technology provides syndicates with satellite imagery and intelligence to assess claims in the immediate wake of catastrophe events and other losses and is provided by McKenzie Intelligence Services.
For more information about the claims priorities and related activity, please see the articles by Lee Elliston, the LMA’s Head of Claims Operations, in this issue of Viewpoint.
What’s next on the LMA claims agenda? The LMACC is currently identifying areas of priority, and synergies between claims management and claims agreement processing, and the technology and solutions needed to support the market’s move away from legacy claims technology and outdated back-office systems.
The future may hold innovations, such as customer and third party claims and First Notice of Loss (FNOL) portals, a single London claims agreement platform, fund management and direct settlement claims services, sanctions and fraud technology, and mainstream adoption of robotics and artificial intelligence.
Our customers will benefit directly from the transformative changes the claims community is leading.