The scope of the licenses means that in most countries where Lloyds has permissions, claims can be adjusted and settled either centrally or locally. Customers benefit from market wide claims expertise and co-ordination with the broking community as well as local payment where required.
Claims professionals in the Lloyd’s market make payments into various territories compliantly. In the majority of countries where Lloyd’s is licensed, claims payments can be made to claimants in either London or where the claim occurred. Loss adjusters may need to be locally licensed or authorised.
The recent Claims Lead Arrangement Initiative enhances the claims management in particular in a multinational context.
Claims Lead Arrangements (effective 1 June 2023)
The Claims Lead Arrangement gives authority to the managing agent of the leading Lloyd’s syndicate to determine claims on behalf of the following Lloyd’s syndicates. For more complex claims, the managing agent of the second Lloyd’s syndicate is jointly responsible with the managing agent of the leading Lloyd’s syndicate to determine the claim.
The changes to the rules which apply to all Managing Agents when handling claims has increased the financial amounts that require a single agreement party in most circumstances (three specific circumstances which may require a second agreement party at a certain stage of the claim).
- Third Party Claims: £1m Lloyd’s Market Share
- First Party Claims: £2m Lloyd’s Market Share
- Non-Proportional Reinsurance: £5m Lloyd’s Market Share