Cunningham Lindsey UK has been dropped from Lloyds TSB's panel of loss adjusters but has been retained for some subsidence work for the immediate future.

The axe fell after the UK's fourth-largest broker with a half-year premium income of £560m decided to review its loss adjusting needs.

The winners from Lloyds TSB's tender process are McLarens Toplis and Miller Pycraft, two of its three existing loss adjusters.

Bev FitzGerald, chief executive of Miller Pycraft, attributed his firm's success to its increased investment in new technology, including equipping its adjusters with laptops.

The personal computers provide Miller Pycraft loss adjusters with full internet and email facilities as well as online access to weather records and replacement goods suppliers.

FitzGerald said: “Innovation and high performance levels were key features in the success of Miller Pycraft gaining the nomination to the new Lloyds TSB adjuster panel.”

A spokeswoman for Lloyds TSB said the review was prompted by changes in the amount of work it was passing to its panel of loss adjusters.

She explained: “We are utilising our systems better and have built up greater expertise in claims handling which means we have been pushing less work to our loss adjusters. We therefore decided that we needed fewer loss adjusters.”

Cunningham Lindsey UK's director of personal lines, Phil McNeilage, said: “Naturally, we are disappointed. However, Lloyds TSB will continue to instruct us on large losses and subsidence claims, allowing us to maintain an ongoing relationship with this important client.”

But Lloyds TSB said that while it will continue to offer subsidence work to Cunningham Lindsey UK, this relationship is also under review.