Industry bodies approve single claims model for London

A single model for non-complex claims may soon become a reality after getting the greenlight from the International Underwriting Association (IUA) of London and the Lloyd’s Market Association (LMA).

 

The proposed Single Claims Agreement seeks to establish a model which would enable policy leaders to authorise claims up to a certain value on behalf of following carriers. Participation in such agreements will be considered at point of placement.

 

The single model is expected to make the claims settlement in the London market more efficient while also improving service and customer experience, according to LMA CEO David Gittings.

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David Matcham, IUA chief executive, also chimed in: “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.”

 

Apart from the IUA and LMA, Lloyd’s and the London & International Insurance Brokers’ Association (LIIBA) also backed the proposed agreement to deliver a single claims model.

 

“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 uncontroversial, small to medium sized losses under London Subscription Market placements to the benefit of clients,” said LIIBA’S CEO Christopher Croft.

 

According to the trade bodies, work is underway to build the needed framework for the proposed single model. More details will be revealed to Lloyd’s and the London market in the coming days.

 

Once the final framework has been published, it will be for the parties to elect to adopt the model at the point of underwriting.