Lloyd's Market Association Bulletin

LMA22-030-PK | 26 October 2022

Lloyd’s Faster Claims Payment (FCP) BAA and DCAA Endorsements

Faster Claims Payment (FCP) is a new Lloyd’s funding and payment solution that provides for the fast and direct payment of a claim to a policyholder. The solution decouples the payment of claims from the monthly bordeaux and loss fund top-up processes. FCP facilitates, via the Vitesse payment platform, direct access to insurer funds thereby reducing delays in payment. This initiative is part of a set of improvements focused on the delegated authority market, bringing it a step closer towards the Future at Lloyd's digital end-state. 

The LMA's DA Wordings Group has published endorsements to the Binding Authority Agreement (BAA) and Delegated Claims Administration Agreement (DCAA) for use where all parties to the BAA or DCAA are contracted with Vitesse and have agreed to use the FCP solution, so that data in relation to claims payments can be shared with Vitesse when FCP is utilised. The BAA Endorsement will give the lead the authority to approve the transfer of data to Vitesse on behalf of the follow market(s). 

These endorsements should therefore be attached to all BAAs and DCAAs on which FCP is to be utilised.

Download the endorsements and guidance:

   BAA FCP Endorsement - LMA5601 GUIDANCE.docx 
   BAA FCP Endorsement - LMA5601.docx
   DCAA FCP Endorsement - LMA5602 GUIDANCE.docx
   DCAA FCP Endorsement - LMA5602.docx

Use of wordings and clauses

From time to time, the LMA publishes wordings and clauses as models which can be accessed on the Lloyd's Wordings Repository and/or the LMA website. These models are provided as a service to members and clients of the LMA, are purely illustrative and not mandatory (unless otherwise specifically mandated by Lloyd’s, law or regulation). Members and clients are free to adopt or amend different wordings and clauses in their sole discretion. The LMA takes no responsibility or liability for the use of these models and it is the responsibility of the contracting parties to ensure and, where appropriate, take professional advice on whether or not model wordings or clauses comply with applicable laws and regulations, or are suitable for their intended use. The LMA does not publish written guidelines with regard to application or intent of any specific contractual terms and the LMA therefore cannot release any clause drafting history. The LMA (including all panels and working groups, which may include Joint Committees in conjunction with the International Underwriting Association (IUA)) in drafting such wordings and clauses operates under strict terms of reference to ensure, amongst other things, compliance with Competition Law.

Pippa Kelly

Delegated Authorities Executive