Members of the International Underwriting Association have begun a pilot project to test a new electronic claims system for the London Market.
The scheme will allow companies to assess new technology designed to make the submission of claims information faster and more transparent.
Electronic Claims Files for the company market will be linked to a shared repository that has been developed by Xchanging, the market's back office service provider.
Files will be continually available to companies for their own review and record keeping. The IUA said the need for brokers to present individual paper claims files to different underwriters is expected to be greatly reduced in time.
The project is a key part of the London Market's overall reform programme and a similar electronic claims initiative is also underway in the Lloyd's market.
Already IUA members have, since the late 1980's, used CLASS (Claims Loss Advice and Settlement System) to access much claims information electronically. The new repository scheme, however, aims to provide a much more complete electronic claims management system, including document storage.
IUA Deputy Chairman Stephen Riley, is overseeing the pilot scheme.
He said: “The Electronic Claims File has the potential to greatly improve insurers' access to claims information and help deliver a much more efficient service to clients. It will encourage good business practice enabling companies to better support their claims decisions and justify reserves to shareholders.
“During this pilot project IUA members will be assessing the reliability, functionality and overall effectiveness of the new technology. Of course, since the company market is already familiar with the CLASS system, there is a good foundation on which to build and I am confident that an important step forward in the market's wider reform programme can be taken.”
A total of seven IUA companies are participating in the pilot together with the cooperation of four brokers. The scheme will last for three months and include fortnightly meetings for participants to discuss progress and report any problems.
Trevor Maddison, a senior vice president involved in market reform at Marsh, added: “The development of electronic claims files has the potential to reduce the market's dependency on paper and allow brokers to advise and negotiate claims more efficiently.
“This is a significant cultural shift in how the London Market operates, but IUA members in particular are well placed to take advantage given their experience with the CLASS system. I believe electronic claim servicing is a realistic tool."
