London, United Kingdom – 01 February 2017 – A transformational new model that will simplify how claims within the London market are handled is launched today in an effort to improve client service and streamline claims agreement across the London market.
The Single Claims Agreement Party model will enable quick and efficient authorisation of claims by allowing policy leaders to agree non-complex payments up to £250,000 on behalf of following carriers. Participation in a single agreement arrangement will be optional and considered by brokers and carriers at point of placement.
From an initial idea from London & International Insurance Brokers’ Association ( LIIBA) this collaboration between LIIBA, the Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and Lloyd’s will enhance London’s claims service for (re)insureds. It represents a significant step in making the London market more competitive and enhancing its position at the centre of the international insurance industry through the implementation of efficient working practices.
LIIBA’S CEO Christopher Croft said: “The broking community is delighted that we can move forward with the Single Claims Agreement as it will expedite the handling, agreement and payment of small to medium sized losses under London subscription market placements to the benefit of clients.”
LMA’s CEO David Gittings said: “The single agreement model will make the settlement of claims in the London market more efficient and will offer an improvement in service and customer experience. The delivery of a market-wide agreement will become a reality thanks to the collaborative efforts of the LMA, IUA, LIIBA and Lloyd’s.”
IUA’s CEO David Matcham said: “The introduction of an option to provide for a single claims agreement, at the time of placing promises to make the processing of claims in London faster, cheaper and more effective.”
Lloyd’s CEO Inga Beale said: “In a competitive global sector, customers want and expect the London market to be easier to do business with. By ensuring that the most critical part of our business offer, the resolution of claims, can be done in a more straightforward manner, this will mean London can continue to remain an attractive proposition.”
Under the Lloyd’s Claims Scheme, following syndicates are already bound by the decision of the lead Lloyd’s underwriter for ‘standard’ claims within a set class of business thresholds, typically below £250k. However, a lead agreement model is not typical in the company market, and each IUA carrier has agreement rights to the claim for their proportion. The new single claims agreement arrangement and the related model will allow the (London) slip lead to bind all followers on risk, if carriers accept the arrangement and the clause as a policy term at the point of placement.
Notes to Editors
Media relations contacts
James Milne, Head of Communications, LMA
Tel: 020 7327 8405; Email: firstname.lastname@example.org
Scott Farley, Communications Director, IUA
Tel: 020 7617 4449; Email: Scott.Farley@iua.co.uk
Mark Knight, Associate Director, LIIBA
Tel: 020 7280 0153; Email: email@example.com
Stewart Todd, Head of Strategic Communications, Lloyd’s
Tel: 020 7327 6272; Email: Stewart.Todd@lloyds.com
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 £32billion per annum.
For more information visit: www.lmalloyds.com
About the IUA
The International Underwriting Association of London (IUA) is the focal representative and market organisation for non-Lloyd’s international and wholesale insurance and reinsurance companies operating in the London Market. The IUA exists to promote and enhance the business environment for international insurance and reinsurance companies operating in or through London.
For more information visit: www.iua.co.uk
Lloyd’s is the world’s specialist insurance and reinsurance market. Under our globally trusted name, we act as the market’s custodian. Backed by diverse global capital and excellent financial ratings, Lloyd’s works with a global network to grow the insured world –building resilience of local communities and strengthening global economic growth.
With expertise earned over centuries, Lloyd’s is the foundation of the insurance industry and the future of it. Led by expert underwriters and brokers who cover more than 200 territories, the Lloyd’s market develops the essential, complex and critical insurance needed to underwrite human progress.
For more information visit: www.lloyds.com
London & International Insurance Brokers’ Association (LIIBA) represents the interests of Lloyd’s insurance and reinsurance brokers operating in the London and international markets. Its origins can be traced back to 1910. LIIBA’s mission is to ensure that London remains where the world wants to do business by improving its competitive position.
For more information visit: www.liiba.co.uk