Lloyd's warns of six-month deadline to meet new claims standards
Lloyd's managing agents have six months to meet the new minimum standards on claims managements, Lloyd's director of worldwide markets Julian James has warned.
Speaking at the Chartered Institute of Loss Adjusters (Cila) annual meeting, James said the three claims areas that Lloyd's would be focusing on this year are: claims reserving, claims management performance and management of relationships with third party experts. The timetable will start once each standard is introduced.
Last year, Lloyd's introduced a set of eight claims management principles, designed to "enhance indemnity accuracy and manage risk effectively".
These will be reinforced by minimum standards of performance, introduced over the next three years, said James.
He said: "Lloyd's is meeting with every managing agent over the course of six months, and where action is needed to raise standards, we will identify it, and where requested we will provide the syndicates with assistance to achieve it.
"Going forward, performance will be regularly reviewed against the standards, and non-performance will be vigorously addressed."
He added: "We are not trying to introduce a standard process or manual for claims. We know that individual businesses may prefer different solutions, and that some claims will require different treatment to others. But that does not absolve the need for everyone to perform to requiredstandards."