Lloyd’s market provides strong response to hurricane claims
Claims arising from Hurricanes Harvey, Irma, and Maria have been agreed in less than five days on average, the Lloyd’s Market Association (LMA) has calculated.
An analysis of approximately 4,000 claims has found that the average time between brokers giving notification to lead underwriters and receiving bureau notification of claims agreement has been 4.9 days. The LMA also found the average lead insurer response time was 2.2 days.
To date, the LMA estimates the market has now paid almost $850m in claims as follows:
- Irma – 2,000 claims notified, approx. $527m settled
- Harvey – 1,700 claims notified, approx. $270m settled
- Maria – 300 claims notified, approx. $66m settled
Lee Elliston, head of claims operations at the LMA said: “The hurricanes have provided an extensive and real-life stress test for the Lloyd’s market. The response to an unprecedented series of major events has demonstrated the market’s ability to handle complex claims efficiently. In such circumstances, it is vital that money reaches policy holders as fast as is possible and our findings indicate that the market has been working hard to ensure this has happened.”
Aon Benfield corroborated the LMA’s findings after undertaking its own analysis.
Steven Clark, executive director, claims, client services at Aon Benfield, said: “The data so far shows a strong performance by the Lloyd’s market, which has responded faster than many US domestic carriers. Lloyd’s has also responded quicker than most in the Bermuda market, which lacks the subscription infrastructure to turn claims around this quickly.”
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About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £30billion per annum.
For more information visit: www.lmalloyds.com.
For further information please contact:
James Milne, Head of Communications
Lloyd’s Market Association
T 0207 327 8405