Faster Claims Payment for brokers

Faster Claims Payment (FCP) is a new funding and payment solution which provides fast and direct payment of a claim to a policyholder, delivering significant benefits for brokers, their customers, and the entire market. Brokers have a critical role to play in the FCP process, both in the early stages and when FCP becomes an embedded and valuable component of the joint venture.

FCP will improve the claims experience for policyholders by allowing Delegated Claims Administrators (DCAs) to make payments on request in local currencies, drawing on managing agent funds directly via the Vitesse payment platform, removing the need for loss funds and the associated cash calls, and paying claims in hours. The solution enhances the reputation of Lloyd’s and all market participants, allowing them to compete with local insurance providers in efficiency and speed.

During our pilot, FCP successfully delivered 5,512 payments totalling $18 million with more than 20 fully automated replenishment cycles.

You may have seen our recently published best practice guidance for MAs and DCAs on bordereaux and data management, claims management and accounting reconciliation. 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.

The critical role of a broker in the process includes identifying suitable binders at the time of placement and ensuring all parties are already onboard and aware of the benefits. Other important tasks may require some changes to existing processes, but Lloyd’s and LIIBA are working together to mitigate and reduce any inconvenience during this period until FCP seamlessly integrates into the joint venture. The changes for brokers, summarised below, are detailed in the FCP Broker Journey.