Lloyd's Market Association Bulletin
LMA20-036-TB | 30 July 2020
Delegated Claims Enhancements
This bulletin publishes the new Delegated Claims Standards supported by the new Delegated Claims Administrator Agreement and market developed DCA SLAs and SLEs. Driven by the DACG, with valuable contribution and support from both Lloyd’s and LIIBA, the development and purpose of the Delegated Claims enhancements is to remove areas of technical or operational inefficiency that generates duplication and burden, amongst our DCAs and the market, where there is no competitive advantage. The adherence to these standards as designed by the market and supported by key DA brokers, LIIBA and Lloyd's, will generate a more consistent and streamlined business approach and process to generate better customer outcomes, whilst reducing friction within the claims lifecycle.
The Delegated Claims Standards cover 2 areas;
- Key Delegated Claims Standards – these define a standard approach and minimum level of operation on key claims handling and account management activities
- DA Oversight Alignment – delivery of the operational and performance management focused objectives as agreed with the market, LMACC and Lloyd's following Lloyd’s Thematic Review of DA Claims Management, key deliverables being:
- LMA9188 – Delegated Claims Administrator Agreement - replacing the LMA9008
- Standard service levels agreements and expectations (enshrined in LMA9188 under Schedule)
- DCA technical and customer outcome focused audit scope, with enhanced claims testing – LMA19-030-TB
The Delegated Claims Standards
The below table outlines the Delegated Claims Standards and has the support of Lloyd's, all LMACC members, LIIBA and the DACG. To ensure successful adoption of the standards and approach to DA claims handling we will be reaching out to all Head of Claims to seek their support for the adherence of these standards as designed and unanimously supported by the DACG.
The DCS guidance document supports the delivery of these new standards, and includes links to enabling and supporting material previously published.
A Q&A document has been developed to support the delivery of the new Delegated Claims Administrator Agreement (LMA9188), and this can be found below.
Lloyd’s Support - Paul Brady, Lloyd’s Head of Policyholder & Third Party Oversight said:
“Lloyd's has confirmed its support for these delegated claims standards as positive initative to help better and more efficient management of the market's delegated claims and in sddition the use and oversight of DCAs."
Lee Elliston (on behalf of the LMACC following their majority support) said:
"The introduction of these enhancements is critical to the ongoing service management and oversight of delegated parties that support our policyholders. Ensuring that we have standards and service levels in place that are focused on generating good customer outcomes whilst also adapting to a consistent and core oversight model and approach that makes us easier to transact with, reduces friction and cost, and will support the markets transition to Lloyd's Delegated Oversight Manager (Chorus) and the related DCA approval process."
Senior Executive, Claims