Skip to main content

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.

FCP benefits for brokers

For brokers, there is a net gain in time and effort for using FCP, with the removal of effort to set up loss funds and participate in cash call processes and the reduced costs of wire transfers to DCAs. The entire market has real-time visibility and control over claims payments, and as the cost of the solution is covered by insurers there is no financial cost to brokers.

Process changes

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.

Main FCP changes for brokers

Binder registration and account creation

  • Work with MAs to select suitable binders for FCP:
    • Ensure all parties are onboard with the solution - contact the project team during onboarding with any queries; see which lead underwriters, following syndicates, other brokers and DCAs are "FCP ready" or "FCP live" on the LIMOSS website
    • Speak to MA during placement to determine if loss fund or FCP is preferred payment method
    • Lloyd's 'singleton' binders and subscription binders are both fully eligible
    • The policy order has been placed 100% in the Lloyd's market
    • Other selection guidance is shared with onboarding parties and available on the main FCP home page
  • Insert new clause in contract to allow data to be shared with Vitesse – see guidance on the LMA website
  • Flags binders on DCOM as FCP
  • Respond to Vitesse/MA queries if errors or missing fields identified in section information and signed lines splits in DCOM
  • Assist follow markets to understand the historical performance of the binder to plan their funding accounts accordingly

Share and agree the bordereaux with all parties

  • Upload the BDX to ECF noting ‘non-cash’, ‘FCP’ and the BDX month in Broker Narrative field

Get in touch

For more information on FCP please email us: