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Guidance to support effective claims fund management and Faster Claims Payment (FCP) solution

The partnership between managing agents and delegated claims administrators (DCAs) is critical to the success of our delegated authority business, which represents 40% of the premiums written at Lloyd’s. One of the key benefits of the effective use of DCAs is that they can support quick and efficient customer service including the speedy payment of claims.

For this reason, and following a successful pilot, Lloyd’s is providing important guidance to support the forthcoming adoption of our Faster Claims Payment (FCP) solution which will help enable the faster transfer of claims money to our customers. The FCP solution allows DCAs the ability to access funds directly from syndicates as and when required, reducing the need for the management of separate loss funds. It will also support Lloyd’s wider objective of supporting more cost-efficient claims management processes.

For FCP to be properly adopted, it is critical that there is effective management of client funds by ensuring clean and accurate data as well as transparency and regularity in accounting and reporting. Lloyd’s is therefore providing best practice guidance for managing agents and DCAs on bordereaux and data management, claims management and accounting reconciliation.

Delegated Authority Claims Guidance

Guidance to support effective claims fund management and FCP solution for managing agents and delegated claims administrators. 

This has been informed through the experience of the recent FCP pilot and is in line with our Principles for Doing Business for managing agents to deliver a high quality, prompt and fair claims service. Although this has been developed to support FCP adoption, this is of general application for the management of loss funds (regardless as to whether payments are being made via FCP) as it is intended to reduce the risk of error-prone and time-consuming reconciliation burdens on all parties.

For managing agents that currently provide claims loss funds one immediate step that needs to take place is to work with DCAs to undertake a reconciliation of those existing loss funds to allow for the timely and appropriate return of surplus funds from DCAs.

We are providing more training information for organisations wishing to take full advantage of the Faster Claims Payment solution, and this will be available soon. Further detailed training and support will be available as we begin to onboard with market participants.

As with any process improvement, the short-term effort in implementing the guidance will deliver medium and long-term gains in efficiency, reduced costs, and ease of transacting delegated authority business at Lloyd’s. The FCP solution alone creates an enhanced customer experience and speed of settlement, significantly improved control over payments, greater transparency in accounting, and the total removal of cash call effort and processing fees.

As more Future at Lloyd’s solutions such as FCP are delivered, market participants who can demonstrate best practice will reap the digital benefits presented by a better, faster, and more efficient Lloyd’s.

Get in touch

For more information on FCP please email us: