Sue Langley, Lloyd’s Director of Market Operations and North America, lauded the progress, detailed in a recently released report from the Lloyd’s Market Reform Group (MRG), which is charged with modernizing the insurance market’s business processes.
In an open letter (available on the Lloyd’s web site at www.lloyds.com), Langley wrote: “The Market Reform Group announcement clearly shows the progress that we have made towards making this market a more efficient place to do business. In all three of the key workstreams – Accounting and Settlement (A&S), Electronic Claims Files (ECF) and Contract Certainty – the market has embraced new systems and shown a determination to change the way it does business.
“In terms of electronic claims, over 80 brokers are now live, accounting for approximately 92 percent of claims by volume. As you may be aware, ECF has been difficult to accurately measure but an independent review of the figures shows that approximately 88 percent of in scope claims and 75 percent of all claims are now being handled electronically. Many brokers are reporting a reduction in settlement time thus improving our service to our customers.”
Langley indicated that only a small number of brokers had yet to sign up to use the ECF system, but she expects all of them to be included by the end of March.
A&S participation has been slower to start, but Langley noted that “over 70 percent of original premium related transactions are now processed using the system.
Contract certainty, which has been mandated by the UK’s Financial Services Authority (FSA), has remained “consistently over 90 percent,” Langley wrote, adding that it is “becoming embedded as a business as usual process.”
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