Aon has challenged the Lloyd's market to increase the number of claims it processes electronically by the end of 2006.

The broker is in discussions with the market's electronic claims practitioners group about expanding the electronic claims files project that will come into force at Lloyd's in September.

Ian Summers, director of change strategy at Aon, told Insurance Times: "It is a fantastic move for Lloyd's to progress from walking paper files around the market to the electronic way of working.

"It is getting practitioners to move away from the face-to-face claims agreement practice to a way that is supported by technology."

But Summers said that the claims files project, which mirrors a similar system used in the company market, will be limited to new claims.

"Typically a claim can be updated five, maybe 10, times in its life. We would like to challenge the market to move very quickly from just dealing with first advices to all outstanding claims."

Aon, which processed 100,000 claims files electronically last year compared to just 500 in the rest of the market, has vowed to drive the project forward.

Summers said: "The first step is for the Lloyd's project to go live. But let's move to improve it in two to three months and not two to three years."

The electronic repository will enable an electronic copy of the claims file to be shared between brokers, Xchanging Claims Service and franchisees in support of Lloyd's claims strategy.