The Single Claims Agreement Party (SCAP) is an initiative delivered by the London Market to make it easier to settle lower value (£250,000 or below), non-complex claims where there are multiple London agreement parties.

SCAP is a contractual arrangement that facilitates quick and efficient authorisation of claims, delegating the handling responsibility of a claim to the Slip leader, who must be a London Market carrier.

This will greatly simplify the claims process, making it easier to do business in the London Market, reducing expense for brokers and carriers and potentially resulting in significant savings. Policyholders will see efficiencies in the claims process and ultimately experience a smoother and faster payment of valid claims (within the SCAP limit).

An analysis of Lloyd’s claims shows that:

  • 44% of claims would be subject to SCAP, reducing the cross-market agreement parties to only one.
  • An additional 43% of claims already require one agreement party (due to the Lloyd’s claim scheme or there only being one managing agent on the risk).
  • Once SCAP is in place, 87% of all Lloyd’s claims could/will have only one person handling the claim, which equates to nearly 9 in every 10 claims.
  • Analysis of Lloyd’s claims (following the Lloyd’s claims scheme) shows that having one agreement party vs. two results in a reduced response time between parties by 51%.

SCAP was developed as a cross-market initiative between LIIBA, LMA, IUA and Lloyd’s and represents a significant step in ensuring the London market remains competitive. 

Guidance, supporting documents and FAQs can be found on the London Market Group’s website here

Additionally, Lloyd’s have issued a market bulletin Y5157 which addresses specific considerations on applying the arrangements in the Lloyd’s market.


What sort of claims will this be applicable to?

The new single claims agreement arrangement and the related model will allow the (London) slip lead to bind all followers on risk, if carriers accept the arrangement and the clause as a policy term at the point of placement.

SCAP can be adopted for new and renewing risks on risks bound from 1 February 2018.

It will relate to lower value, non-complex claims at threshold of £250,000 to the slip.

The SCAP Slip Leads must be a UK authorised (re)insurer or a Lloyd’s syndicate

SCAP operates to give delegated authority to the SCAP Slip Lead to determine claims for the followers on the same MRC where those followers agree to adopt SCAP and participate on the risk on the same terms (other than premium and brokerage).  The SCAP Slip Lead cannot determine claims on behalf of insurers that participate on the risk through a different slip or where there are different terms.

Insurance and reinsurance placements are both in scope for SCAP.  However, binding authorities, proportional treaties and quota share treaties are outside of scope.