© lloyds 09.15 registration & coffee 09.30 welcome - keith stern, regional manager, uk &...
TRANSCRIPT
© Lloyd’s
09.15 Registration & coffee 09.30 Welcome - Keith Stern, Regional Manager, UK & Ireland 09.45 Lloyd’s overview - Ed Pennock, Manager, Market Development, International Markets
10.45 Coffee Break
11.00 Tour of Lloyd’s and surveys12.00 Accessing the Lloyd’s market – Broker Registration - Alan Taylor, Relationship Manager, Brokers, Relationship Management
12.45 Meet the CEO of Lloyd’s - Richard Ward
13.00 Networking lunch with the Lloyd’s Market
14.30 Accessing the Lloyd’s Market – Coverholder Registration - Peter Montanaro, Head, Delegated Authorities 15.15 Claims handling at Lloyd’s - Philip Godwin, Senior Claims Manager, Claims 15.45 Wrap-up and next steps - Keith Stern, Regional Manager, UK & Ireland
Welcome & Introduction
keith stern, regional manager, UK & Ireland
© Lloyd’s
2008 – 2010 Lloyd’s Total GSP vs Lloyd’s UK GSP (in £ m)(Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09. Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging.
3,294 3,504
17,053 17,198
2009 2010
Total (excl. UK)UK
£ 20,347m £ 20,701m
Lloyd’s (excl. UK)Growth 09/10
0.8%
Lloyd’s UKGrowth 09/10
6.4%
2010 Lloyd’s UK
share
17%
2009 Lloyd’s UK
share
16%
£ 16,693m
2,957
Lloyd’s UKGrowth 08/09
11.4%
2008 Lloyd’s UK
share
18%
13,736
Lloyd’s (excl. UK)Growth 08/09
24.1%
2008
© Lloyd’s
Distribution Channel
Direct £ 1.94bn
Reinsurance £ 1.56bn
Method of Placement
DirectFacultativeNon-prop TreatyTreaty
CoverholdersBrokers
Type of business
Lloyd’s Classes of Business
2010 Lloyd’s UK Business Profile (Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09. Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging.
45%
55%
Direct
Reinsurance
32%(58%, direct)
68%
5%
26%
14%55%
4% 4%4%
5%5%
25%
20%
19%
14%
Property (D&F)
Marine
Casualty
Property Treaty
Casualty Treaty
Energy
Accident & Health
Aviation
Motor
© Lloyd’s
2010 Survey: Broker top ten countries to develop businessUK, Brazil and France are the territories that brokers would most like to develop business with Lloyd’s next year.
Country Score
UK 45
Brazil 30
France 25
South Africa 25
China 16
Spain 16
Australia 12
Singapore 11Italy 10
Scoring mechanism
1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
*Brokers could rank up to 5 territories, scored as below for comparison. N.B. Not all of the Brokers responded.
Remaining Countries
Japan 9Germany 6Norway 5Israel 4Sweden 3Hong Kong 2Denmark 2Ireland 1Netherlands 1
© Lloyd’s
2010 Survey: Managing Agent top ten countries to develop businessSingapore, Australia and the UK are the territories that managing agents would most like to
develop business with Lloyd’s next year.
Top ten countries*
Singapore 50
Australia 47
UK 45
Brazil 44
France 36
China 30
Japan 25
South Africa 22
Germany 17
Italy 16
Scoring mechanism
1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
*Agents could rank up to 5 territories, scored as below for comparison
Switzerland 15Hong Kong 13Spain 11Norway 11Sweden 10Ireland 9Poland 7Netherlands 6Belgium 5Denmark 4Austria 3Portugal 0Israel 0
Remaining Countries
© Lloyd’s
2010 Survey: Broker distribution interests – Northern Europe Highest interest for coverholder development in the UK and Sweden.
Northern Europe
4
5
4
5
6
6
7
9
7
9
9
11
2
2
3
3
3
4
4
3
6
4
5
15
0 5 10 15 20 25 30
Luxembourg
Austria
Ireland
Belgium
Denmark
Switzerland
Norway
Netherlands
Germany
France
Sweden
UK
Number of respondents
Specific interest in developing coverholder business
Already have office
© Lloyd’s
2010 Survey: Managing Agent distribution interests – Northern Europe Highest interest for coverholder development in the UK and Norway and for service company development in the UK and Switzerland.
Northern Europe
2
2
4
6
6
7
8
7
8
9
8
13
1
2
1
1
2
1
1
2
3
2
4
6
0 2 4 6 8 10 12 14 16 18 20
Luxembourg
Belgium
Netherlands
Denmark
Austria
Germany
Ireland
Sweden
France
Norway
Switzerland
UK
Number of respondents
Specific interest in developing coverholder business
Specifc interest in setting up a service company or presence on the ground
© Lloyd’s
Via Local Service Company Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager>www.lloyds.com/offices
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Access to Lloyd’s for UK/EU BrokersThis roadmap is for local Brokers who are seeking access to the Lloyd’s Market for a local client
Via Local Coverholderlocal Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Eu Service Company (crossborder)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Eu Coverholder (crossborder)local Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Lloyd’s Broker Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access Directory of Lloyd’s Registered Brokers
www.lloyds.com/directories/brokers
Become a coverholderIn countries with established licence – approval via Delegated Authority Approval Process (contact Managing Agent and Lloyd’s Broker)
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information for prospective Coverholders> www.lloyds.com/coverholders
Become a managing agent approved brokerBecome a non Lloyd’s Registered Broker - approval via individual Managing Agent registration process (direct contact)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information on Managing Agents – non Lloyd’s Brokers
> www.lloyds.com/nonlloydsbrokers
Become a Lloyd’s registered broker - approval via Lloyd’s Broker Approval Process
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information on becoming a Lloyd’s Registered Broker
> www.lloyds.com/brokerregistration
Placement Risk Carrier How to access this channel
© Lloyd’s
Lloyd’s overview
ed pennock, international markets
© Lloyd’s
Lloyd’s - key characteristics
Unlike most other insurance brands, Lloyd’s is not a company, it’s a market where our members join together as syndicates to insure and reinsure risk
We have a long history of risk taking, responding to change and customer demands
The Lloyd’s market insures complex and specialist risks – from oil rigs to celebrity body parts to major airlines
Lloyd’s underwriters devise tailored innovative solutions for complex problems
Lloyd’s appetite for risk is guided by long experience and encouraging responsible risk taking
© Lloyd’s
… to every type of insurance and challenges…1887 1911 19691906
© Lloyd’s
PIPER ALPHA1988
EXXON VALDEZ1989
HURRICANES1989
ASBESTOS1980s- 1990s
© Lloyd’s
A plan was devised with the Government to ring fence pre-1992 liabilities and assets and put them into Equitas
Lloyd’s managed to survive but it still didn’t understand the risks the market was involved in taking on.
There was a lack of standards and poor management.
Corporate members were introduced
From Reconstruction… to renewal
© Lloyd’s
Some Specialist insurance coverage provided at Lloyd’s
© Lloyd’s
The leading specialist insurance market
93% of Dow Jones Industrial Average companies
92% of FTSE 100 companies
86% of Fortune Top 50 European companies
81% of Fortune 500 US companies
Top 7 pharmaceutical companies
Top 20 banks
Lloyd’s provides insurance for the majority of the world’s largest companies.
Lloyd’s has global reach and local depth providing business with insurance and reinsurance solutions in over 200 territories.
© Lloyd’s
Lloyd’sMarket Structure
© Lloyd’s
Lloyd’s market structure
Source: Lloyd’s as at 31/12/10 * some risks are placed directly with managing agent-owned service companies
Members
Policyholders
Direct
Reinsurance
54 Managing
Agents
Management
82Syndicates
Underwriting
Members Agents
178 Lloyd’s Brokers
Service Companies*
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
SEE: www.lloyds.com/directories
Coverholders
© Lloyd’s
A dynamic and diverse marketAs at 1 January 2011, the Lloyd’s market was home to 54 managing agents
that manage 82 live syndicates.
Source: Lloyd’s Annual Report 2010
© Lloyd’s
Lloyd’s2010 financial results
© Lloyd’s
Solid result in challenging circumstances…
£m 2009 2010
Gross written premiums 21,973 22,592
Combined ratio 86.1% 93.3%
Investment return 1,769 1,258
Profit before tax 3,868 2,195
Return on capital (pre-tax) 23.9% 12.1%
Source: Lloyd’s pro forma financial statements, 31 Dec 2010
© Lloyd’s
…and our performance compares well against our peers
100
86
94
99
84
9395
101
91
102
60
80
100
120
Lloyd's US P/C Industry (i) US Reinsurers (ii) European(Re)Insurers (iii)
Bermudian(Re)Insurers (iii)
2006 2007 2008 2009 2010
Sources i) Insurance Information Institute (estimate-2010), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies)
%COMBINED RATIO
© Lloyd’s
Lloyd’s Chain of security
Lloyd’s unique capital structure, often referred to as the ‘Chain of Security’, provides excellent financial security to policyholders and capital efficiency to members.
The Corporation is responsible for setting both member and central capital to achieve a level of capitalisation that is robust and allows members the potential to earn superior returns.
Source: Lloyd’s Annual Report 2010
© Lloyd’s
Ratings
Three of the world’s leading insurance rating agencies recognise Lloyd’s strengths and robust capitalisation and the financial strength of the market. In 2010, all three rating agencies reaffirmed our ratings.
The Lloyd’s financial strength ratings apply to every policy issued by every syndicate at Lloyd’s since 1993.
Fitch RatingsA+ (strong)
Standard & Poor’sA+ (strong) A+
AA.M. BestA (excellent)
© Lloyd’s
Lloyd’s
International network
© Lloyd’s
Business Profile
Aviation
3%Motor
5%Energy
6%
Marine
7%
Casual ty
20%
Property
22%
Reinsurance
37%
Class of business split Geographical split
Source: Lloyd’s Annual Report 2010
ROW
4%Central Asia & Asia
Pacific
10%
Europe
16%
UK
20% Other Americas
7%
US & Canada
43%
© Lloyd’s
Office Network
1
1
1
1
2
22
2
33
3 3
3
3
3
3
South Africa
Australia, Hong Kong (SAR)Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland, UK
Brazil
1 1
1
11
4
4
4
3
3
3
3
2
4Local underwriting with co-located Syndicates(or via a Lloyd’s regulated entity); Country Manager with Market Development Role
Europe
3 Country Manager with Market Development Role
2 Country Representative for regulatory requirements
1 Country Representative for minimum regulatory requirements
Type Market Development Scope Territories
Europe
Austria, Denmark, Norway, Portugal
Argentina, Belize, Chile
Namibia, Zimbabwe
Cyprus, Greece, Israel, Malta
New Zealand
China
Japan
Singapore
North America
www.lloyds.com/AMERICA
3
© Lloyd’s
Lloyd’swhy lloyd’s
© Lloyd’s
Lloyd’s remains in a strong position….
320+ year history of paying valid claims
Innovation and underwriting expertise remains a priority
Financial strength
Strong Financial Results (2008 - £1,899m 2009 - £3,868m 2010 - £2,195m)
Lloyd’s Central Fund (Central Assets - £2,377m)
Ratings reaffirmed in 2010 (A+ Standard and Poor’s & Fitch and A with A M Best)
Robust performance management framework minimizes risk to the Central Fund.
Global network of licenses
Ongoing effort to improve access via approved intermediaries
Why Lloyd’s
© Lloyd’s
Accessing the market –
Broker registration
alan taylor
manager, broker relationship management
© Lloyd’s
Agenda
Direct access for brokers
Registered Brokers
The current registration regime
The minimum standards
The registration process
© Lloyd’s
Direct access for brokers
Variety of access routes to Lloyd’s for brokers
Coverholder, service company, wholesale broker and direct
For direct access to managing agents brokers have two routes, become either;
Lloyd’s Registered Broker
- Central registration process, providing access to all managing agents subject to Terms of Business Agreements (ToBAs)
Managing Agent Approved Broker (Non-Lloyd’s Registered Broker)
- Individual managing agent registration process, providing access only to this managing agent
- To do business with another managing agent broker must register again with the second managing agent
For both routes the minimum standards are the same
© Lloyd’s
Registered BrokerThe current registration regime
FSA assumed regulatory responsibility for brokers January 2005
Lloyd’s role in respect of brokers needed to be redefined
Lloyd’s key responsibilities
Prudential
- Protecting the brand and reputation of the market
Commercial
- Increase the flow of business into the market
- Ensure broker can process business at Lloyd’s
© Lloyd’s
Registered BrokerThe minimum standards - 1
Appropriate regulatory approval
FSA, or relevant authority in EU member state, or outside EU equivalent
overseas regulatory authority
Evidential – FSA approval letter
Segregated client money accounts
Evidential – letter of confirmation from bank
Enhanced PI coverage
FSA requires €1m per single claim and in the aggregate the higher of €1.5m
or 10% of annual income up to £30m
Lloyd’s requires a minimum limit of £3m or 4 times the annual net retained
brokerage
© Lloyd’s
Registered BrokerThe minimum standards - 2
Terms of Business Agreement (ToBA)
What is the appetite of the market?
Minimum of one ToBA, preferably several
Adequate systems / procedures for processing business at Lloyd’s
Business is processed centrally on behalf of all Lloyd’s syndicates by
Xchanging
Xchanging assess broker capability
- Technical manual is produced by broker
– Proving knowledge & understanding
- Testing and training
– Appropriate and functioning software & competent people
© Lloyd’s
The registration process
Pre-application meeting
Crucial part of the process
- is becoming a Lloyd’s Broker right for your business?
- Provides you with the chance to find out more about what you need to
do
Formal application
Xchanging and managing agent confirmations
Average application time is 4 months
Much depends on the appetite of the applicant to get through the process
© Lloyd’s
The registration process
22 new Lloyd’s Registered Brokers in 2009/10 – 32 applications
2011 - 3 successful applications, 5 applications in process
UK regional applicants
2009/11 – 9
A good application?
Good business plan
Already initiated relationship(s) with managing agent(s)
Clear understanding of how the firm will handle central processing
Appetite to get through the process in good time
© Lloyd’s
www.lloyds.com/The-Market/I-am-a/Broker-Agent/How-to-become-a-Lloyds-Registered-Broker
© Lloyd’s
Lloyd’s uk broker
programme
Richard Ward, CEO
© Lloyd’s
lloyd’s delegated
authority business
peter montanaro, head of delegated
authorities
© Lloyd’s
Agenda
Types of coverholder
Numbers
Oversight
Strategy
Application Process
© Lloyd’s
Types of coverholder
Approved Lloyd’s coverholder
Full authority
Pre-determined rates
Prior submit
Restricted coverholder
Service company
© Lloyd’s
Delegated Authority - dimensions
Premium to Lloyd’s
approx £5.5bn in 2010.
Approved coverholders
2,223
Registered binding authorities
6,457
Restricted coverholders
approx 2,500
Service companies
272
© Lloyd’s
Delegated Authority Standards The Managing Agent has a clear strategy for writing and managing
delegated underwriting as part of its overall business plan
The Managing Agent carries out thorough due diligence of coverholders to which it proposes to delegate authority
The Managing Agent ensures that it has binding authorities in place with each coverholder to which it delegates authority clearly defining the conditions, scope and limits of that authority and which comply with Contract Certainty requirements, including the requirement to demonstrate regularly that insurance documents have been issued within required timescales
The Managing Agent proactively manages delegated underwriting contracts once incepted to ensure compliance with contract conditions
© Lloyd’s
Oversight of Lloyd’s DA Business
Code of Practice
Service Company Code of Practice
Coverholder handbook
Lloyds.com
Crystal
Lloyd’s service standards
Lloyd’s code of conduct
Committees (DUC, BOLT, BACG, LMA-Compliance)
© Lloyd’s
Key Issues
Delegation/Sub-delegation
Trust Accounts
Financial Crime
AML
Sanctions
Bribery
Solvency 2
© Lloyd’s
STRATEGY
© Lloyd’s
A reminder of Lloyd’s strategic plan …
- Make placing business into the Lloyd’s market more efficient
- Undertake promotional and educational activities aimed at existing and potential coverholders
- Provide robust oversight of business written by coverholders
To inform our work: -
1. 2010 survey of 1100 coverholders
2. Structured interviews with key stakeholders (brokers, MAs and key country managers)
3. Structured interviews with MGA ‘advisory panel’
Context: - strategic importance
© Lloyd’s
Premium & claims standards issued
Mandated for new coverholders
Existing coverholders encouraged to adopt
WHAT HAVE we Done: TECHNOLOGY & STANDARDSPremium & claims standards: - agreed & issued
© Lloyd’s
What have we done: coverholder experience New marketing & educational material for coverholders
Including: -
- New case studies
- New coverholder directory
© Lloyd’s
WHAT WE HAVE done : COVERHOLDER EXPERIENCE
An update on: -
• Lloyd’s annual results
• New Reporting Standards
• Lloyds.com coverholder site
• New LLMIT test
To 2097 coverholders: -
• Open & click rates of 40%
New coverholder e-bulletin: - Coverholder News
© Lloyd’s
WHAT WE HAVE Done: COVERHOLDER EXPERIENCE Hosted coverholder inwards visits
2010 Coverholder Events
- EU coverholder event 4-5 November, 60 European
coverholders
- CH Technology Forum 5 November, 25 suppliers Over 240 London market attendees
‘Lloyd’s hosted events, to provide networking, discuss interests and share experience’
28-30 March AAMGA Programme
- Introduction & tour
- Update presentations
- Broker & Agent shadowing
- Networking sessions
© Lloyd’s
What is coming up? – claims
Understand current service levels - current process delays in London
- MAs and brokers to provide turnaround times for claims bordereaux (TB letter)
Consider options for improvement - consult with market on options
Focus on co-lead claims handling - pilot of new process to start in May (LMA driven pilot)
- leaders to look at claims in parallel rather than serially
Working to improve claims processes and response times…
© Lloyd’s
Brand
- Provide clearer brand guidelines for Coverholders
- Explore a sub brand for coverholders at Lloyd’s
Explore brand possibilities
- Enhanced Lloyd's branded policy jacket
- Explore a coverholder branded certificate/plaque
for approved coverholders
Marketing factsheet
- Provide a marketing factsheet to help coverholders
explain Lloyd’s to their clients
What is coming up: use of Lloyd’s brand
Clearer branding guidelines - ‘show me what I can do?’
© Lloyd’s
ATLAS
- Training coverholders how to use Atlas
- Improving the Atlas front end so easier to use
Events
- EU Coverholder Event (3-4 November)
- Audit conference (26 September)
- Coverholder Technology Forum (28-30 September)
Translated wordings
- Model BA contracts (German translation pilot)
- Policy wordings (German translation pilot)
- Updated model contracts (consolidation of additional clauses)
WHAT is coming up: other areas
Atlas, events and translated wordings
© Lloyd’s
statusLLMIT now available on line
Develop factsheet to explain LLMIT
Prioritise top US States to explore accreditation (e.g. California, N. York, Illinois)
“Lloyd’s introductory test”
1
Introductory stand alone qualification
Basic insurance market principles & practice
E- learning course & exam, globally available
What is coming up: LLMIT
content
• Insurance principles
• Main classes of business
• Legal principles of insurance
• Reinsurance
• London market regulation
• Structure of London market
• Governance & operation of Lloyd’s
• Insurance intermediation in London
• Underwriting
• How business is transacted
• Premium & claims processes
© Lloyd’s
APPLICATION PROCESS
© Lloyd’s
Application Process Atlas
Sponsoring Broker and Managing Agent
Business Plan
FSA Approval / Licences
Financials
Insurance
Key staff / Company Experience
Systems / Business Continuity
Standard bordereau
Undertaking
© Lloyd’s
lloyd’s claims
management –
multiple dimensions
a single objective
phil godwin, senior claims manager, claims
Content
1. Major Claims in Context
2. Performance Management Framework
3. Catastrophe Response
4. The Claims Process – today
5. Transforming the Future
6. Priorities
Major Claims in Context
Press release 13 May 2011, net estimated ultimates:
• US$ 1.95bn – Japan earthquake and tsunami
• US$ 1.2bn – New Zealand earthquake
• US$ 650m – Australia flooding
No material impact on Lloyd’s capital
No expected Central Fund exposure
Our focus is paying all valid claims swiftly
Performance Management Framework
A highly regulated market:
• Regulated by the Financial Services Authority
• Lloyd’s Corporation regulates the Lloyd’s market via:
- Council of Lloyd’s - Lloyd’s Franchise Performance Board - Underwriting & Claims Standards Framework - Performance Management Directorate
Directorate exercising powers approved by the Council
Claims Performance Framework
Lloyd’s requires all Managing Agents adhere to a minimum of :
- Eight Lloyd’s Claims Management Principles- Forty One individual claims Standards
- Enhanced Standards effective January 1st 2012
Lloyd’s Performance Management Directorate:
- ensures adherence - provides market leadership - protects the Lloyd’s brand
Standards are a Minimum not a Maximum
• Claims culture: embedded claims focus from top to bottom
• Training & development: appropriate skills & resources
• Proactive processes: efficient, timely claims handling
• Documentation: appropriate audit trail
• Reserving: consistent, timely, accurate
• Expert management: disciplined & proactive management
• Performance measurement: appropriate, regular
• Information sharing: co-operative claims agreement process
Enforceable & Applicable to every Managing Agent
Principles Framework
• Lower value/high volume claims
• Sufficient local skill
• Outsourcing risk is not “material”
• Cost effective, good for the customer
Triggers for Local Handling
Where are Lloyd’s Claims Handled
• Higher value claims
• Complex claims
• Insufficient local skill
• Where delegation is a material risk
Triggers for London Handling
Both approaches reflect what the customer wants
Ground Rules:
• High standards of due diligence pre-contract • Clearly documented agreements/authorities• Effective audit programmes/oversight • The risk multiplies as relationships terminate• Actively case manage to complete closure
Loss Funds:
• Immediate access to settlement monies
• Balance reduced over time
• Residual monies reclaimed ultimately
Delegated Claims Management Framework
A Key Mechanism for Efficiency and Key Area for Risk
• LMACC – Lloyd’s Market Association Claims Committee
• BACG – Binding Authority Claims Group
• CSRB – Claims Service Review Board
• FIPI – Financial & Professional Lines Claims Group
• LRCG – Lloyd’s Reinsurance Claims Group • LMECG – Lloyd’s Market Energy Claims Group
• Cat Co-Ordination Group – Cross Market Group
Claims Sector Groups
Significant Expertise in a Single Market in a Single Location
Corporation CAT Steering Group deployed
• Multi Disciplinary Group
• Gathering Situational Intelligence
• Directing & Advising
Market CAT co-ordination group:
• Provide Leadership
• Establishing Task Forces
• Identifying challenges and solutions
Lloyd’s Local Network
• Country & Regional Managers
Catastrophe Response
Established & Consistently Proven Track Record
Policyholder notifies claim
Retail broker
Coverholder/ TPA
Lloyd’s broker
Lloyd’s ‘Leader’
Xchanging Claims Services agrees
claims on behalf of following market
Expert
ad
vis
ors
Following Market
The Present Claims Process
Transformation
Programme
Transforming the Future
Claims Transformation Programme
Enhance Lloyd’s reputation for fast and fair claims handling
Faster transaction times
Faster settlements
Improved customer service
Easier Market Access
Choice
Enhanced communication
Via a programme of strategic &
tactical activities
To deliver:
Phase 1 & 2 Pilot
Incoming Claim
Lead Syndicate
XCS
(on behalf of following syndicates)
Incoming Claim
Segmentation rules determine agreement
party (s)
Subscription policies w.e.f.1.4.2006
ECF claims i.r.o policies issued on four COB w.e.f 1.1.2010 &
1.7.2011
2
1
Leader £100,000
£100,000 - £5,000,000
Incoming Claim
Pilot Claims – Agreement Parties
+ Second £5,000,000 +
+ Second
All data at 24th August 2011:
• Total claims in scope: 9,900• Split - 82% Standard, 16% Mid and 2%
Complex
Standard Claims
• Average end to end transaction times improved by 40%
Pilot Results So Far
Concept Proven by Results, Pilot expanded at July 1st
Provide fundamental understanding of insurance principles with core focus on claims
Utilisation of variety of development methods, including hands-on experience
4 x 3-month Placements Lloyd’s Broking House Managing Agency Law Firm / Loss Adjuster
• 12 month programme
Two – Five years claims handling experience
Participants alternate between formal training at Lloyd’s, mini market placements (~2 weeks) and project work
Modular approach:Lloyd’s/The MarketLegal Aspects of Claims
Handling
Talent Initiative – Fifty Professionals over 5 years
Graduate Programme Market Personnel
Priorities
Paying valid claims as quickly as possible:
- Claims Transformation Programme
- Talent – remains a key strategic priority
- Making it easier to do business at Lloyd’s
- Maintaining a strong performance framework
- Broker/Client Feedback is key
Multiple Dimensions, One Objective
David LangHead of Claimst: +44 (0) 207 327 5012f: +44 (0) 207 327 [email protected] Sarah GravestockPA to David Langt: +44 (0)20 7327 5980f: +44 (0)20 7327 [email protected] Philip GodwinSenior Claims Managert: +44 (0)20 7327 5841f: +44 (0)20 7327 [email protected] Helen AshendenSenior Claims Managert: +44 (0)20 7327 5781f: +44 (0)20 7327 [email protected]
www.lloyds.com/The-Market/Operating-at-Lloyds/Claims
© Lloyd’s
© Lloyd’s
Lloyd’sNext steps
© Lloyd’s
Lloyd’s KS presentation to Durham Business School 14 April
Birmingham KS presentation Aston Business School 3 May
Manchester BIBA National Conference – Lloyd’s Stand & Workshop 11-12 May
Belfast Networking & Promotional Event 17 May
Bournemouth AIRMIC National Conference – Lloyd’s Stand & Workshop 6- 8 June
London Reps Conference – engagement with MGAA 27-29 June
Lloyd’s AIRMIC Academy workshop 14 July
Lloyd’s Inwards Broker Programme – 50 regional brokers attending 7 September
Lloyd’s Official launch of MGAA in the Old Library 8 September
Weybridge Broker Expo South – Lloyd’s Stand 15 September
Lloyd’s AIRMIC Annual Lecture Cocktail Function – RW to host 27 September
Birmingham KS presentation to Birmingham Insurance Institute 2 November
Lloyd’s European Coverholder Conference – 15 UK coverholders to attend 3-4 November
Lloyd’s KS presentation to Lloyd’s market 15 November
UK Coverholder visits on-site – approx 35 in first 12 months Ongoing
UK Non-Lloyd’s broker visits Ongoing
UK Sustain contact with media – Insurance Age, Post Magazine etc Ongoing
UK – 2011 programme(supporting lloyd‘s key priorities)
© Lloyd’s
Proposals for 2012
BIBA 2012 – Lloyd’s stand
AIRMIC 2012 – Lloyd’s stand
2 x Regional/class of business events in the UK
Expos – Coventry and Weybridge
2 x Inwards broker programmes
On site visits for new coverholders – emphasis on education and brand
Presentations to business schools and institutes
© Lloyd’s
Further information Identifying/authenticating market practitioners -
http://www.lloyds.com/The-Market/Directories
Information relating to UK - http://www.lloyds.com/Lloyds/Offices/Europe/UK
Becoming a Lloyd’s Coverholder -
http://www.lloyds.com/The-Market/I-am-a/Coverholder/Prospective-Coverholder/What-is-the-coverholder-application-process
Becoming a Lloyd’s Registered Broker -
http://www.lloyds.com/The-Market/I-am-a/Broker-Agent/How-to-become-a-Lloyds-Registered-Broker
Attending future regional events around the UK -
http://www.lloyds.com/The-Market/Communications/Events
Making a claim/lodging a dispute -
http://www.lloyds.com/The-Market/I-am-a/Policyholder/Making-a-claim
© Lloyd’s