Lloyd's Market Association Bulletin

LMA18-034-LE  |  17 July 2018

Single Claims Agreement Party (SCAP)
Enhancing the Operating Model


SCAP is the London market initiative that was delivered to develop a more effective process for the settlement of lower value, non-complex claims (£250,000 and below) where multiple cross market London agreement parties are on risk.

It is a contractual arrangement to delegate sole claims handling responsibility to the Slip Leader (which must be a London market carrier).

Following the implementation of the SCAP Clause from 01 February 2018, and the initiation of the Claims Modernisation Programme (within the LM TOM), a SCAP priority was quickly established and supported by the LMA Claims Committee (LMACC) and Claims TOM Steer Co. The priority was to enhance the operation of SCAP to deliver the related benefits (set out during 2018) and streamline the claims management and agreement process that has been delivered within LMA9150.

Objectives and Deliverables

A cross market working group identified the opportunities to enhance the operation of SCAP in 2018, with the objectives set as:

  • accelerating claims decisions and agreement
  • reducing claims life cycle
  • introducing efficiencies and removing the operational burden on carriers due to the initial tactical delivery. 

To meet those objectives a proposed solution that will deliver the following (within three to six months) is being designed:

  • technology; RPA (Robotic Processing Automation) solution
  • resource; delegated processing solution
  • quality; real-time quality control of SCAP triaging and assessment
  • data and intelligence; enhanced real time MI
  • process; consistent cross market process and approach.

The working group assessed several solutions. Any solution requires DXC build/integration given the current reliance on central services and technology, the market working group therefore recommended a DXC solution which is a blend of delegated processing and RPA.

The DXC processer will be provided with ECF access to administer the claim on behalf of the Bureau Lead/Followers, following the adjustment of the claim by the SCAP/Slip Lead. Enhanced MI will be available to allow oversight and controls to be established by carriers and exception reporting will be delivered as the processing follows rules and validation steps that may need intervention or referral.


The benefits of delivering the SCAP operating solution in this way are:

  • automated and delegated processing for bureau leads, followers and XCS, removing the burden and touchpoints from carriers that have no agreement authority under SCAP
  • one touch approach to SCAP claims handling (slip lead only)
  • acceleration of claims agreement and settlement
  • reduction in claim life cycle
  • improved data quality and ‘right first time’ for claim notification, triage and assessment.

Delivering an RPA solution for SCAP also allows us to deliver independently of legacy systems, ensuring that the technology is integrated but is de-coupled. This technology can also be leveraged beyond SCAP to support claims triage, pre adjusting checks, agreement and processing. Knowing that RPA will exist in a future claims model will see this solution enhanced and not thrown away.

Current Status

The solution will be delivered with DXC, in partnership with a third party RPA specialist.

This modern operating model to support SCAP claims is being designed and delivered throughout Q3 and Q4 2018. A cross market working group and governance has been established to manage the delivery and the commercials, the latter being funded by TOM budget but delivered as an addendum to the DXC contract. Ongoing service and performance will be reported and monitored via existing market governance.

Next steps

We would welcome any questions you may have in readiness for Q3 and Q4 and the phased implementation throughout the period. Please engage directly with Sharyn Butcher (sharyn.butcher@lmalloyds.com) or myself (lee.elliston@lmalloyds.com).

Further detail will be delivered in written form, whilst the market will be engaged via a specific SCAP forum, at the same time working through the implementation of SCAP operations, the related processes and enhanced guidelines.

We thank you for your continued support and cooperation in ensuring that the market remains competitive through the implementation of innovative and efficient working practices.

Lee Elliston
Claims Director