Claims Transformation Programme

The objective is to remain ahead of competitor markets with regard to complex claims service and to be competitive on standard claims. This will enable Lloyd's to attract and retain quality business, maintaining and enhancing the market's reputation.

• Background

  In February 2008 the Lloyd's Franchise Board accepted the recommendations of a Lloyd’s Market Strategic Claims Review and approved plans to implement those recommendations. This became known as the Claims Transformation Programme (CTP).

  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 Performance Management Claims team in facilitating change and enhancing claims performance across the market was also considered.

  To achieve the ultimate objective of enhancing the customer experience, eight CTP workstreams were originally defined: Broker Portal, Volume Claims, Large Loss Coordination, Governance & Monitoring, Roll-Out & Legacy, Claims Reporting Suite, Process Efficiency and the Claims Talent Programme.

• The Claims Implementation Board

  The Claims Implementation Board (CIB) is a body established by Lloyd’s consisting of representatives from managing agents and Lloyd’s. The role of the CIB is to drive the implementation of CTP through:

  • Determining the course of the Lloyd’s Claims Transformation Programme to ensure that all key decisions are reached expeditiously and that the principles of sound project management are observed as the programme proceeds;
  • Driving the cultural and behavioural change needed across the market; and
  • Supporting continuous improvement in claims management beyond implementation.

• Claims Agreement Framework

  In order to achieve the objectives of CTP, a revised claims determination framework was devised and tested by the 2010 Claims Scheme Pilot (the “Pilot”) in the marine, property and casualty treaty classes from 1 January 2010. The 2010 Claims Scheme requires that standard claims are agreed by the leading syndicate only on behalf of the subscribing Lloyd’s market.

  Success criteria for the Pilot, agreed by the Lloyd's Franchise Board, were based on expected benefits and comprised faster transaction times while maintaining quality, market perception and without an increase in cost. The Claims Implementation Board and Franchise Board kept the Pilot’s performance under review. In February 2011, the CIB and Franchise Board concluded that the Pilot was successful and the new claims agreement practices were rolled out to all classes of business from 1 July 2012.

• Workstreams

  Current Workstreams

  • Broker Portal
  • Claims Lifecycle 
  • Claims Talent Programme 
  • Claims Reporting Suite 
  • Legacy
  • Volume Claims 

   

  Completed Workstreams

  Roll Out

  Final phase of the roll-out of CTP claims agreement practices to new claims completed on 1 July 2012. Electronic claims on policies incepting on or after this date, in all classes of business, are now in scope of the 2010 Claims Scheme.

  • Face-to-face training for a further 100 managing agent adjusters took place during July 2012.
  • Over 1,100 market adjusters have completed online CTP training.
  • CTP forum specifically for brokers held in April 2012 and available on www.lloyds.com/claims
  • Online training made available via internet to whole broking community – over 470 hits to date.

  Claims Lifecycle

  • Development and deployment of the framework which supports the market response to large losses.
  • For further information on catastrophe management and the Lloyd’s Market Strategic Claims Group, visit the Catastrophe Portal

   Governance and Monitoring

  • This workstream introduced new governance tools to support a vibrant subscription market through embedded risk management.
  • Enhanced Lloyd’s Claims Management Principles and Minimum Standards introduced with effect from 1 January 2012, including new standards relating to service and proactivity.
  • Lloyd’s Claims Metrics for quantitative analysis of claims processing introduced in Q2 2012.
  • List of claims outsourcing arrangements created - see Market Bulletin Y4630 for full details.
  • Monitoring the success of the CTP against the established success criteria is now part of the business as usual work of the Claims team.

   Process Efficiency

  • A broker claims dashboard, providing management information on claims performance for the largest 30 brokers in the Lloyd’s market, was developed in 2012.
  • The broker claims dashboard went live in November 2012 and is produced monthly.