Faster Claims Payment

Faster Claims Payment (FCP) is a new funding and payment solution which provides fast and direct payment of a claim to a policyholder. This solution decouples the payment of claims from the monthly bordereaux and loss fund top-up process. FCP facilitates direct access through the solution to insurer funds, via the Vitesse payment platform, decreasing any delay in payment. 

Our solution will enable payments directly to appropriate beneficiaries, reducing rework and eventually eliminating the loss fund process. Vitesse releases funds in local currencies which further benefits the claims experience for a policyholder.

FCP provides managing agents (MAs) with greater flexibility in their capital management through the loss funds process, and will eliminate the need for cash calls. Additionally, MAs are provided with real-time visibility and control over their claims payments as well as a reduction of associated account and transactions fees.

FCP is a central market service and the contract between Vitesse and LIMOSS has been signed. LIMOSS has contacted managing agents to sign their individual agreements to begin transferring binding authority contracts over to the FCP platform.

As both singleton and subscription binders are in scope, the full benefit of FCP will only be unlocked when everyone is onboard and using the service, to pay claims quickly to customers in their time of need.

Hausch & Company has been working with managing agent Brit and using the Faster Claims Payment solution to pay claims resulting from Hurricane Ian. In one instance, they paid the insured in three days following first notification of loss.

How does FCP work?

Delegated Claims Administrators (DCAs) request payment of claims via the Vitesse portal or an Application Programming Interface (API). Vitesse draws funds from MAs' accounts and processes the payment to the policyholder.

Prior to the submission of a bordereaux, Vitesse will process the DCA data provided. ‘Back-end’ reconciliation can be completed by the MA via the funding reports.  

The MAs' fund accounts are topped up on a regular basis. Vitesse requests replenishment from the existing Lloyd’s process which generates a funding report for the MAs.

Reconciliation of payment takes place between the solution and the MAs' financial teams to allow accounting to be finalised.

The DA Claims Status Tracker enables market participants to track the progress of any bordereau end-to-end; they will see who it is sitting with, how long they have had it and all historical actions, reducing process delays and queries.

We launched the Status Tracker initially to managing agents and brokers at the end of November 2021, and all managing agents are onboarded to the Lloyd’s Insights Hub where they can access the solution. The Tracker is now also available to Delegated Claims Administrators (DCAs). 

If you would like to onboard to the Insights Hub and begin to use the DA Claims Status Tracker please email us.