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 surveys
12.00 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
© Lloyd’s
Welcome & Introduction
keith stern, regional manager, UK & Ireland
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)
£ 16,693m
£ 20,347m
Lloyd’s (excl. UK)
Growth 08/09
13,736
24.1%
2008
Lloyd’s UK
share
£ 20,701m
Lloyd’s (excl. UK)
Growth 09/10
17,053
0.8%
2009
Lloyd’s UK
share
17,198
2010
Lloyd’s UK
share
18%
Lloyd’s UK
Growth 08/09
16%
Lloyd’s UK
Growth 09/10
17%
2,957
11.4%
3,294
6.4%
3,504
2008
2009
2010
Total (excl. UK)
UK
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
© Lloyd’s
premiums not being processed via Xchanging.
2010 Lloyd’s UK Business Profile
(Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Type of business
Method of Placement
45%
5%
Direct
Direct
£ 1.94bn
Reinsurance
£ 1.56bn
Reinsurance
55%
55%
14%
Lloyd’s Classes of Business
4%
5%
5%
26%
Property (D&F)
4% 4%
Marine
25%
Casualty
Property Treaty
Direct
Facultative
Non-prop Treaty
Treaty
Distribution Channel
Casualty Treaty
32%
(58%, direct)
Energy
14%
20%
Accident & Health
Aviation
19%
Motor
68%
Coverholders
Brokers
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
© Lloyd’s
premiums not being processed via Xchanging.
2010 Survey: Broker top ten countries to develop business
UK, 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
*Brokers could rank up to 5 territories,
scored as below for comparison. N.B. Not
all of the Brokers responded.
South Africa
25
China
16
Scoring mechanism
Spain
16
1st choices given 5 points
Australia
12
Singapore
Italy
11
10
2nd choices – 4 points
3rd choices – 3 points
Remaining
Countries
Japan
Germany
Norway
Israel
Sweden
Hong Kong
Denmark
Ireland
Netherlands
4th choices – 2 points
5th choices – 1 point
© Lloyd’s
9
6
5
4
3
2
2
1
1
2010 Survey: Managing Agent top ten countries to develop business
Singapore, 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
Remaining
Countries
*Agents could rank up to 5 territories,
scored as below for comparison
Scoring mechanism
1st choices given 5 points
China
30
Japan
25
3rd choices – 3 points
South Africa
22
4th choices – 2 points
Germany
17
Italy
16
2nd choices – 4 points
5th choices – 1 point
Switzerland
Hong Kong
Spain
Norway
Sweden
Ireland
Poland
Netherlands
Belgium
Denmark
Austria
Portugal
Israel
15
13
11
11
10
9
7
6
5
4
3
0
0
© Lloyd’s
2010 Survey: Broker distribution interests – Northern Europe
Highest interest for coverholder development in the UK and Sweden.
Northern Europe
UK
11
Sweden
9
France
9
Germany
15
5
4
7
Netherlands
6
9
Norway
3
7
Switzerland
6
Denmark
6
Belgium
4
4
3
5
Ireland
3
4
Austria
3
5
Luxembourg
4
0
2
2
5
10
15
20
25
30
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
UK
13
Switzerland
6
8
Norway
4
9
France
2
8
Sweden
3
7
Ireland
2
8
Germany
1
7
Austria
6
Denmark
6
Netherlands
1
2
1
4
Belgium
1
2
Luxembourg
2
2
0
1
2
4
6
8
10
12
14
16
18
20
Number of respondents
Specific interest in developing coverholder business
Specifc interest in setting up a service company or presence on the ground
© Lloyd’s
Access to Lloyd’s for UK/EU Brokers
This roadmap is for local Brokers who are seeking access to the Lloyd’s Market for a local client
Placement
Via Local Service Company
Via Local Coverholder
local Broker / Agent with binding authority, Underwriting
Agency
Via Eu Service Company (crossborder)
Via Eu Coverholder (crossborder)
local Broker / Agent with binding authority, Underwriting
Agency
Via Lloyd’s Broker
Become a coverholder
In countries with established licence – approval via Delegated
Authority Approval Process (contact Managing Agent and
Lloyd’s Broker)
Become a managing agent approved broker
Become a non Lloyd’s Registered Broker - approval via
individual Managing Agent registration process (direct contact)
Become a Lloyd’s registered broker
- approval via Lloyd’s Broker Approval Process
Lloyd’s
Managing
Agent
Lloyd’s
Managing
Agent – usually via
a Lloyd’s Broker
Lloyd’s
Managing
Agent
Lloyd’s
Managing
Agent – usually via
a Lloyd’s Broker
Lloyd’s
Managing
Agent
Lloyd’s
Managing
Agent – usually via
a Lloyd’s Broker
Lloyd’s
Managing
Agent
Lloyd’s
Managing
Agent
Risk Carrier
How to access this channel
Contact local Country Manager
>www.lloyds.com/offices
Syndicate(s)
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access Directory of Lloyd’s Registered Brokers
www.lloyds.com/directories/brokers
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access information for prospective Coverholders
> www.lloyds.com/coverholders
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access information on Managing Agents – non Lloyd’s Brokers
> www.lloyds.com/nonlloydsbrokers
Contact local Country Manager
> www.lloyds.com/offices
Syndicate(s)
Access information on becoming a Lloyd’s Registered Broker
© Lloyd’s
> www.lloyds.com/brokerregistration
© Lloyd’s
Lloyd’s overview
ed pennock, international markets
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
1906
1911
1969
© Lloyd’s
PIPER ALPHA
1988
EXXON VALDEZ
1989
HURRICANES
1989
ASBESTOS
1980s- 1990s
© Lloyd’s
From Reconstruction… to renewal


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
© Lloyd’s
Some Specialist insurance coverage provided at Lloyd’s
© Lloyd’s
The leading specialist insurance market
Lloyd’s provides insurance for the majority of the world’s largest companies.
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 has global reach and local depth providing business with insurance
and reinsurance solutions in over 200 territories.
© Lloyd’s
Lloyd’s
Market Structure
© Lloyd’s
Lloyd’s market structure
Corporation of Lloyd’s
Management
Coverholders
Policyholders
178
Lloyd’s
Brokers
 Direct
54
Managing
Agents
82
Syndicates
Service
Companies*
 Reinsurance
BUSINESS FLOW
Members
 Corporate
Members
Agents
 Individual
Underwriting
CAPITAL PROVISION
SEE: www.lloyds.com/directories
Source: Lloyd’s as at 31/12/10 * some risks are placed directly with managing agent-owned service companies
© Lloyd’s
A dynamic and diverse market
As 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’s
2010 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
23.9%
12.1%
Return on capital (pre-tax)
Source: Lloyd’s pro forma financial statements, 31 Dec 2010
© Lloyd’s
…and our performance compares well
against our peers
COMBINED RATIO
%
120
101
100 102
100
99
94
93
95
91
86
84
80
60
Lloyd's
US P/C Industry (i)
2006
US Reinsurers (ii)
2007
2008
2009
European
(Re)Insurers (iii)
Bermudian
(Re)Insurers (iii)
2010
Sources i) Insurance Information Institute (estimate-2010), ii) Reinsurance Association of America,
iii) Company data (8 European companies: 17 Bermudian companies)
© 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 Ratings
A+ (strong)
Standard & Poor’s
A+ (strong)
A.M. Best
A (excellent)
+
A
A
© Lloyd’s
Lloyd’s
International network
© Lloyd’s
Business Profile
Class of business split
Mot or
5%
Geographical split
Aviat ion
Central Asia & Asia
Pacific
10%
3%
Ener gy
6%
ROW
4%
Reinsur ance
37%
Mar ine
US & Canada
43%
7%
Europe
16%
Casual t y
20%
Pr oper t y
22%
Source: Lloyd’s Annual Report 2010
UK
20%
Other Americas
7%
© Lloyd’s
Office Network
Europe
North America
Europe
1
4
www.lloyds.com/AMERICA
3
1
4
1
3
3
4
3
1
Type
4
1
1
1
Market Development Scope
Local underwriting with co-located Syndicates
(or via a Lloyd’s regulated entity);
Country Manager with Market Development Role
3
Country Manager with Market Development Role
2
Country Representative for regulatory
requirements
1
Country Representative for
minimum regulatory requirements
3
2
3
3
3
1
3
3
3
1
3
3
2
2
Territories
China
Japan
Singapore
Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland, UK
Australia, Hong Kong (SAR)
Brazil
South Africa
Cyprus, Greece, Israel, Malta
New Zealand
Austria, Denmark, Norway, Portugal
Argentina, Belize, Chile
Namibia, Zimbabwe
© Lloyd’s
2
2
Lloyd’s
why lloyd’s
© Lloyd’s
Why 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
© Lloyd’s
© Lloyd’s
Accessing the market –
Broker registration
alan taylor
manager, broker relationship management
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 Broker
The 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 Broker
The minimum standards - 1

Appropriate regulatory approval

FSA, or relevant authority in EU member state, or outside EU equivalent
overseas regulatory authority


Segregated client money accounts


Evidential – FSA approval letter
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 Broker
The 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


UK regional applicants


2011 - 3 successful applications, 5 applications in process
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/BrokerAgent/How-to-become-a-Lloyds-Registered-Broker
© Lloyd’s
© Lloyd’s
Lloyd’s uk broker programme
Richard Ward, CEO
© Lloyd’s
lloyd’s delegated authority business
peter montanaro, head of delegated authorities
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
Context: - strategic importance
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’
© Lloyd’s
WHAT HAVE we Done: TECHNOLOGY & STANDARDS
Premium & claims standards: - agreed & issued

Premium & claims standards issued

Mandated for new coverholders

Existing coverholders encouraged to adopt
© 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
New coverholder e-bulletin: - Coverholder News
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%
© Lloyd’s
WHAT WE HAVE Done: COVERHOLDER EXPERIENCE
Hosted coverholder inwards visits
‘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
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
What is coming up? – claims
Working to improve claims processes and response times…

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
© Lloyd’s
What is coming up: use of Lloyd’s brand
Clearer branding guidelines - ‘show me what I can do?’
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
© Lloyd’s
WHAT is coming up: other areas
Atlas, events and translated wordings
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)
© Lloyd’s
What is coming up: LLMIT
1
“Lloyd’s introductory test”
content
• Insurance principles
• Main classes of business
 Introductory stand alone qualification
 Basic insurance market principles & practice
 E- learning course & exam, globally available
• Legal principles of insurance
• Reinsurance
• London market regulation
status
• Structure of London market
• Governance & operation of Lloyd’s
LLMIT now available on line
• Insurance intermediation in London
Develop factsheet to explain LLMIT
• Underwriting
Prioritise top US States to explore
accreditation (e.g. California, N. York,
Illinois)
• 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
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
Principles Framework
• 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
Where are Lloyd’s Claims Handled
Triggers for Local Handling
•
•
•
•
Lower value/high volume
claims
Triggers for London Handling
•
Higher value claims
•
Complex claims
•
Insufficient local skill
•
Where delegation is a
material risk
Sufficient local skill
Outsourcing risk is not
“material”
Cost effective, good for
the customer
Both approaches reflect what the customer wants
Delegated Claims Management Framework
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
A Key Mechanism for Efficiency and Key Area for Risk
Claims Sector Groups
• 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
Significant Expertise in a Single Market in a Single Location
Catastrophe Response
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
Established & Consistently Proven Track Record
The Present Claims Process
Policyholder notifies claim
Expert advisors
Retail broker
Coverholder/ TPA
Lloyd’s broker
Lloyd’s ‘Leader’
Xchanging Claims Services
agrees claims on behalf of following market
Following Market
Transformation
Programme
Transforming the Future
Claims Transformation Programme
Enhance Lloyd’s reputation for fast and fair claims handling
To deliver:
Via a programme of
strategic & tactical
activities

Faster transaction times

Faster settlements

Improved customer
service

Easier Market Access

Choice

Enhanced
communication
Phase 1 & 2 Pilot
Subscription policies w.e.f.1.4.2006
2
ECF claims i.r.o policies issued on four
COB w.e.f 1.1.2010 & 1.7.2011
XCS
(on behalf of following syndicates)
Segmentation rules
determine agreement party (s)
1
Lead Syndicate
Incoming Claim
Incoming Claim
Pilot Claims – Agreement Parties
Incoming Claim
+ Second
+ Second
Leader
£5,000,000 +
£100,000 - £5,000,000
£100,000
D
i
s
c
r
e
t
i
o
n
Pilot Results So Far
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%
Concept Proven by Results, Pilot expanded at July 1st
Talent Initiative – Fifty Professionals over 5 years
Market Personnel
Graduate Programme



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 Market
 Legal Aspects of Claims
Handling

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 Lang
Head of Claims
t: +44 (0) 207 327 5012
f: +44 (0) 207 327 5986
David.lang@lloyds.com
Sarah Gravestock
PA to David Lang
t: +44 (0)20 7327 5980
f: +44 (0)20 7327 5986
Sarah.Gravestock@lloyds.com
Philip Godwin
Senior Claims Manager
t: +44 (0)20 7327 5841
f: +44 (0)20 7327 5986
Philip.Godwin@lloyds.com
Helen Ashenden
Senior Claims Manager
t: +44 (0)20 7327 5781
f: +44 (0)20 7327 5986
Helen.Ashenden@lloyds.com
www.lloyds.com/The-Market/Operating-at-Lloyds/Claims
© Lloyd’s
Lloyd’s
Next steps
© Lloyd’s
UK – 2011 programme
(supporting lloyd‘s key priorities)

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

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
6- 8 June
© 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/TheMarket/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-ama/Coverholder/Prospective-Coverholder/What-is-the-coverholder-applicationprocess

Becoming a Lloyd’s Registered Broker - http://www.lloyds.com/The-Market/Iam-a/Broker-Agent/How-to-become-a-Lloyds-Registered-Broker

Attending future regional events around the UK - http://www.lloyds.com/TheMarket/Communications/Events

Making a claim/lodging a dispute - http://www.lloyds.com/The-Market/I-ama/Policyholder/Making-a-claim
© Lloyd’s
© Lloyd’s