New Single Claims Agreement Party comes into effect
Today the London Market introduced the Single Claims Agreement Party (SCAP), to make it easier and more efficient to manage claims that have multiple London agreement parties.
Under SCAP, low value, non-complex claims at a threshold of £250,000, can now be handled by the SCAP Slip lead on behalf of the following carriers. Insurance and reinsurance placements are both in scope for SCAP. The benefits for policyholders are clear, with only one person dealing with the claim.
Participation in a single agreement arrangement is optional and considered by brokers and carriers at the point placement. The SCAP Slip Leads must be a UK authorised (re)insurer or a Lloyd’s syndicate.
Dealing with multiple claims agreement parties has been called a barrier on doing business easily and effectively. A single claims agreement party could help reduce expense for brokers and carriers, potentially allowing significant savings.
Lloyds believes that SCAP could be applied to as many as 80% of eligible claims across the London Market whilst reducing the time it takes to resolve a claim by one agreement party compared to two agreement parties by over half.
In a competitive global sector, customers want and expect the London market to be easier to do business with. By ensuring that the most critical part of our business offer, the resolution of claims, can be done in a more straightforward manner, this will mean London can continue to remain an attractive proposition.Lloyd’s CEO, Inga Beale