Guy Carpenter & Company, Marsh & McLennan’s risk and reinsurance specialist, announced plans to mandate the use of Electronic Claims File (ECF) for in-scope claims for all Lloyd’s markets from January 1, 2008. “This decision follows the successful implementation of Guy Carpenter’s ECF initiatives and underscores the firm’s commitment to further market reform,” said the bulletin.
Claims handling (along with underwriting) has long been the bane of the Lloyd’s market, as brokers, claims managers and underwriters continued to use paper processing. That’s been changing for a while, and the fact that one of the most important players in the London market has decided to go all electronic will accelerate the process.
Geoff Bromley, Guy Carpenter’s Chairman of European and Asian operations was notably enthusiastic, indicating that “ECF significantly improves the current London market claim process by removing paper and thus the need for physically moving claim files around the market. Ultimately, it fosters a more efficient claims adjustment and payment process for our clients.”
The process he describes isn’t that old, but Guy Carpenter has been a major participant from the beginning. Following a pilot program, the Company signed up to start integrating it over a year ago (See IJ web site May 3, 2006). It has been actively involved with the process since 2004.
As far as fully implementing ECF, the bulletin notes: “Guy Carpenter business must agree to the use of CLASS@Lloyds and the Insurance Market Repository to handle all in-scope claims for 2008 risks. Guy Carpenter’s 2008 contracts will also be amended to incorporate this new provision. Managing Agencies that have not signed the Repository Rules and Repository Agreement with Xchanging, and are therefore unable to trade electronically, will not be offered lead lines on Guy Carpenter’s 2008 business, subject as always to the firm’s duty to act in its clients’ best interests.”
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