Performance development

Lloyd's Claims Principles and Minimum Standards

The Lloyd's Claims Principles and Minimum Standards (the Principles) act as a framework for the effective management of claims throughout the Lloyd’s market.

An integral component of Lloyd’s Three Year Plan, the Principles reflect the market’s recognition of claims performance as a core customer service and a key determinant of profitability.

The Lloyd's Franchise Performance Claims team works in partnership with Lloyd's managing agents to maximise the benefits to each business from meeting or exceeding the Principles. 


Lloyd's 2006 Claims Scheme

The Principles address many different types of insurance. The statements are intended to be flexible and to apply in varying ways based on the available facts, wordings, timing and other circumstances specific to the claim. The Principles do not prescribe how any particular claim should be handled or set standards by which any insurer's conduct on a particular claim has been or should be judged.

Instead, the Lloyd's 2006 Claims Scheme sets out the requirements for determining claims arising under contracts of insurance and reinsurance underwritten on or after 1 April 2006. Prior to this date, the Lloyd's 1999 Claims Scheme, or its predecessors, may apply.


Risk-based approach

Having generated considerable information on each managing agent's processes and controls for claims management, our engagement with the market has evolved into evaluating whether that operational infrastructure translates into financial performance.

Our strategy for understanding, evaluating and developing claims performance is founded on three values:

  • Managing agents are free to choose how to demonstrate compliance with each Principle and corresponding Minimum Standards

  • Our evaluation of managing agent performance is underpinned by commercial common sense, drawing on our collective experience as claims professionals

  • In deciding the need for any remedial action, we will be guided by the materiality of the risk posed by non-compliance 

A thorough understanding of each managing agent enables us to differentiate on the basis of individual performance. Adopting a risk-based approach, we focus our resources on those managing agents requiring greater assistance.

Please click on the "see also" link for details of each Principle and applicable Minimum Standards.

Last updated on 07 Jul 2008