Lloyd's managing agency XL Brockbank has appointed Capita Eastgate Collection as agent for its £400m annual premium income in a six figure deal.
The contract is believed to be the largest credit control contract awarded to date in the London market. The collection service will cover insurance and reinsurance premiums for XL Brockbank's three composite syndicates, 861, 1209 and 588, which have a combined income of £400m.
XL Brockbank chief executive Nick Metcalf said it had decided to outsource its credit control function to Capita Eastgate in advance of Lloyd's new code of practice governing the management of credit risk.
The code comes into effect on January 1, 2001.
Metcalf said: “The new arrangements will help us to further improve the accuracy of our underwriting data, thereby ensuring that XL Brockbank underwriters have access to reliable information when dealing with brokers and clients.”
Capita Eastgate, formed a month ago following the merger of Capita and Eastgate, concentrates on providing outsourcing services to the insurance industry. It has a turnover of £327m and is listed on the FTSE-100 Index.
Robin McCoy, managing director of Capita Eastgate, said: “This is not only a significant contract for Capita Eastgate; it represents a milestone in the Lloyd's market and highlights the opportunity for the London market to achieve economies of scale in this and other activities.”
He added that some companies would prefer to outsource premium collection because it was a complex area covering policies written under binding authorities.
Capita Eastgate provides a number of other services to Lloyd's and London market insurers, including run-off management, claims adjusting, reinsurance processing, debt recovery and transaction processing.