History
In 2004, following an extensive study of claims management procedures, Lloyd’s developed a target operating model for subscription market claims management. The model was endorsed by the Lloyd's Franchise Board and is being implemented progressively across the Lloyd's market under the supervision and guidance of the Lloyd's Franchise Performance Claims team.
In June 2007, Lloyd's commenced a strategic review to examine whether the target operating model was still relevant for the Lloyd’s market, and in doing so identify any aspects for improvement.
Looking back - the Lloyd's Market Strategic Claims Review 2007
The review considered brokers’ and customers’ requirements, the opportunities presented by electronic trading, options for shared claims services, and the skill sets needed by managing agents to meet the challenges of a changing market. The role of the Lloyd's Franchise Performance Claims team in facilitating change and enhancing claims performance across the market was considered also.
The parameters of the review were agreed under guiding principles aligned to Lloyd’s vision, market structure, operating benefits and key market objectives.
The way forward - the Lloyd’s Market Claims Change Programme 2008
The review revalidated the 2004 target operating model and recommended targeted modification and investment. The review also recognised the progress made since 2004, including implementation of the 2006 Lloyd's Claim Scheme, significant investment in claims resources, take-up of Electronic Claims Files and progress with claim file segmentation.
The Claims Change Programme draws the recommended activities together into a number of workstreams. A streamlined governance structure has been created to ensure projects are delivered on time and effectively. The programme is sponsored by the Lloyd's Franchise Board, with support from the Lloyd's Market Association (LMA).
Workstreams
Workstreams (below) are project-managed by staff members of the Lloyd's Franchise Performance Claims team and the LMA, in collaboration with the LMA Claims Committee and Xchanging Claims Services.
Claims processing: segmenting centralised processing and peer review services commensurately with claim volumes, value and complexity
Shared services: continuing the development of elective shared services, according to identified market requirements
Communications: maximising opportunities for promoting claims performance as a key driver of Lloyd’s global brand
Management information: facilitating better business decisions through the provision of broader and deeper management information, tailored to identified business needs
Data integrity: ensuring market systems are populated with good quality data, enabling market participants to place full reliance on the available management information
Claims business requirements: acquiring greater understanding of current IT infrastructure requirements and future technology options, to enable strategic investment decisions.
