Transforming claims at Lloyd's
Thu 12 Jul 2012
Insurance is, arguably, only as effective as the way it pays claims. Since its introduction a year ago, the Claims Transformation Programme is changing the way in which Lloyd’s handles claims.
In February 2008, Lloyd’s undertook a strategic review of its claims payment function and developed some key recommendations for making the process faster and simpler. Out of these, the Claims Transformation Programme (CTP) was born.
What started as a pilot scheme in 2010 has since been rolled out across every class of claim, from marine to property and professional indemnity – transforming the Lloyd’s claim process.
“At the start of the programme we set out four performance measures to tell us if we were succeeding – speed, quality, market perception and cost – and we’ve exceeded our expectations in all four,” says David Lang, Head of Claims at Lloyd’s, who oversaw the implementation of CTP.
“We’ve decreased the time it takes to respond to a claim transaction by 44%. Although that doesn’t account for the time between transactions or the time it takes for an insured to file the claim, it’s a massive improvement in the part of the process Lloyd’s can influence.”
“CTP is significantly changing the way in which insurance claims are handled at Lloyd’s. Of the 215,000 open claims currently in the market, 11,000 are handled under the CTP and since 1 July this year all risk codes are now part of the CTP.”
It’s not just about process. The CTP is about training people as well. So far more than 900 market adjusters have completed training, and brokers were told about the changes at the CTP Forum in April - a webcast of the event is available from lloyds.com.
For underwriters a ‘decision tree’ is available to help them implement the changes when they underwrite a risk, now the Programme has been rolled out.
With the Claims Transformation Programme now live for every risk code, Lloyd’s is well placed to build on its reputation for fast and fair settlement of valid claims.