Billions of pounds in stagnant reserves are tied up in London market claims systems. That's according to JTW Reinsurance Consultants.
JTW's managing director Julian Ward told Insurance Times that only tighter management controls would address the problem.
Ward cited a recent IUA study, which revealed there are over half a million open claims within the London Market, with a value of £9.75bn. He claimed £1bn worth of claims have not been updated in the last 5 years.
Ward said: "It's a scandal there is such complacency in the industry. And it weakens and leaves the industry exposed. The overall reserves cannot possibly represent a true and fair picture of exposures.
"Action needs to be taken. Only tighter, better and more responsible investigation into the movement of claims and a commitment by management to make best use of resources can change matters."
