Lloyd's syndicates have six months to meet the new minimum standards...
Lloyd's syndicates have six months to meet the new minimum standards on claims managements, Lloyd's director of worldwide markets Julian James warned today.
Speaking at the Chartered Institute of Loss Adjusters (Cila) Annual General Meeting, James said the three areas that Lloyd's would be focusing on this year are: claims reserving, claims management performance and management of relationships with third party experts.
James said: “Lloyd's is meeting with every managing agent over the course of six months, and where action is needed to raise standards, we will identify it, and where requested we will provide the syndicates with assistance to achieve it.”
The principles were introduced last year, and the minimum standards are being introduced progressively over the next three years
James added: “Going forward, actual performance will be regularly reviewed against the standards, and non-performance will be vigorously addressed.”
On relations with third party experts, James said: “The standards concentrate on the selection procedure, on rationale for selection, on developing accurate plans and budgets, on negotiating competitive terms and on adequate checking of invoices.”
He continued: “We are not trying to introduce a standard process or manual for claims. We know that individual businesses may prefer different solutions, and that some claims will require different treatment to others – but that does not absolve the need for everyone to perform to required standards.”
James concluded: “Given the array of competing pressures in our industry, the future of successful claims management ultimately hinges on a fine balance – that of carrying out the claims process at lower cost and with greater efficiency, against the demand from both customer and insurer to improve service and the claims experience.”