Lloyd’s of London says its ongoing project to transform claims handling has helped bring down the time it takes to agree a claim transaction to less than 12 days.
The world’s largest insurance market said that two key initiatives that have enabled this are Project Genesis that is working to allow data to be captured and shared more easily and the Exchange service, a messaging hub that gives brokers, underwriters and IT suppliers a single platform through which they can send and receive information.
“The Claims Transformation Programme continues to make progress, improving the way the market handles claims,” the world’s largest insurance market said in its 2013 annual results.
“Since the programme’s inception, there has been a 53 percent improvement in the speed at which the relevant parties agree a claim transaction, bringing the average time down from 25 days to less than 12.”
In 2010, Lloyd’s talked about increasing the adoption of its Exchange service, which handles authentication, authorisation, routing, delivery and response management so that endorsements can be processed electronically and more quickly.
The hub ensures that information is sent in compliance with the common insurance industry ACORD (Association for Cooperative Operations Research and Development) standard. Exchange is the world’s first ACORD certified hub.
The Exchange is now co-owned by Lloyd’s, Lloyd’s Market Association, the International Underwriting Association and the London and International Insurance Brokers’ Association. The governing body is known as The Message Exchange Limited (TMEL), and in 2013, this body awarded a five-year contract to IBM to provide the Exchange service.
Meanwhile, Project Genesis aims to create a shared Data Capture Service (DCS) to make processes even more efficient.
“DCS will provide an outsourced, shared service which will take input from insurers of Market Reform Contract information in any format and turn it into rich, structured ACORD standard data, once on behalf of all subscribing insurers, to be made available to insurers’ back office systems and to core central processes,” Lloyd’s said.
Last year, Lloyd’s Market Strategic Claims Group also launched ‘On the Ground Global Profiles’, an online tool for managing agents to help them deal with local claims following a catastrophe.
The ‘one-stop shop’ provides information and resources on local regulations, legal frameworks and business culture and customs. The first country covered was Mexico, which is at high risk of a range of natural disasters, including floods and earthquakes. Other countries, including Australia and Canada, continue to be added.
Lloyd’s announced a pre-tax profit of £3.2 billion for 2013.