“Insurance is, arguably, only as effective as the way it pays claims,” says a bulletin from Lloyd’s of London, marking the first anniversary of its Claims Transformation Program, which, it noted, is “changing the way in which Lloyd’s handles claims.”
In February 2008, Lloyd’s undertook a strategic review of its claims payment function, which “developed some key recommendations for making the process faster and simpler. Out of these, the Claims Transformation Program (CTP) was born.”
A “pilot scheme” was launched in 2010, which was eventually extended to include “every class of claim, from marine to property and professional indemnity – transforming the Lloyd’s claim process.
Lloyd’s head of claims, David Lang, who oversaw the implementation of CTP, explained: “At the start of the program we set out four performance measures to tell us if we were succeeding – speed, quality, market perception and cost – and we’ve exceeded our expectations in all four.”
“We’ve decreased the time it takes to respond to a claim transaction by 44 percent. Although that doesn’t account for the time between transactions or the time it takes for an insured to file the claim, it’s a massive improvement in the part of the process Lloyd’s can influence.”
“CTP is significantly changing the way in which insurance claims are handled at Lloyd’s. Of the 215,000 open claims currently in the market, 11,000 are handled under the CTP and since 1 July this year all risk codes are now part of the CTP.”
Lloyd’s also stressed that the transformation goes beyond the processing part of claims management. It’s also “about training people as well. So far more than 900 market adjusters have completed training, and brokers were told about the changes at the CTP Forum in April. For underwriters a ‘decision tree’ is available to help them implement the changes when they underwrite a risk, now the Program has been rolled out.
“With the Claims Transformation Program now live for every risk code, Lloyd’s is well placed to build on its reputation for fast and fair settlement of valid claims.”
Source: Lloyd’s of London