The new service designed to tackle so-called ‘non-moving claims’ in the Lloyd’s market is operational and ready for managing agents to sign up, the Lloyd’s Market Association announced today.
The Non-moving Claims Service, operated by Charles Taylor Insurance Services (CTIS), will handle all non-moving claims apart from binding authority claims, which will be handled by Xchanging Claims Services (XCS).
The continued issue of non-moving (or static) claims, where a claim has been notified but no further communication has been received for over 12 months, led to the market requesting the LMA’s Claims Committee (LMACC) to review alternative options for dealing with these claims. The resulting tender process involved six potential suppliers with CTIS and XCS securing the backing of LMACC in September 2010.
The involvement of CTIS is a landmark as it is the first time that a tender process has been used by managing agents to choose an outsource provider for a market-wide solution.
Tim Willcock, Head of Claims at the LMA, said: “This service will be a significant step forward for the market in addressing non-moving claims. While it does not prevent claims from becoming static, it identifies those claims which are deemed to be static and provides an effective outsource option for managing agents.
“The service is elective and so provides choice for managing agents in how they meet the standards set by the Corporation of Lloyd’s. Choice is a central principle in the Lloyd’s Claims Transformation Programme.”
The LMA has distributed contractual documentation to all managing agents, allowing them to review the service from a legal perspective. Information sent from the LMA also tells managing agents how to proceed and whom they can contact. Meanwhile, CTIS has established contact with the claims department of each managing agent, which can choose whether or not to take advantage of this service.
CTIS and XCS will obtain files and then update claims on behalf of participants providing the claims fall within agreed parameters. Cases falling outside these will be referred back to the lead syndicate.
Source : LMA Press Release
