What are Lloyd’s minimum standards for claims management?
This article is part of a series of informative blog posts about the Lloyd’s minimum standards for claims management.
Lloyd’s has an established claims journey which has been refined over many years, all the way from its beginnings in Edward Lloyd’s coffee shop and through the San Francisco earthquake of 1906, to the present day. This means that the claims process and standards that have been employed keep Lloyd’s as a leading light in claims management.
Now, let’s take some time to examine some of Lloyd’s processes more carefully…
Lloyd’s has minimum standards in place that are statements for all business conduct, such as; conduct risk, validation, governance and operating at Lloyd’s to name just a few. These same principles and minimum standards have been established under Lloyd’s byelaws. Furthermore, all of Lloyd’s Managing Agents are required to meet its byelaws, however Coverholders and Third Party Administrators typically hold similar standards of their own as these parties are key players in the overall claims process.
Documenting and communicating your ethical culture for managing claims should be of high importance to Managing Agents
Setting out to document and communicate the guiding principles for your claims management could feel like a never-ending task. It should be evident to everyone in your organisation that claims managers are committed to adjusting and managing claims on their merits and that they want an ethical, effective and efficient claims resolution.
But are your ethics and guiding principles made clear enough?
New employees at all levels within your organisation need to have a thorough understanding of how you want your claims managed. Customers want to be assured that their claims are going to be handled appropriately and with the upmost professionalism. Lloyd’s requires its Managing Agents to reflect their ethical culture and guiding principles all the way from the boardroom to the employees on the ground floor. Your organisations principles need to illustrate that claims are at the heart of your business. It is also the perfect opportunity to set the companies position on claims management and to get everyone working from the same page.
Moreover, it helps to ensure that your ethics and guiding principles are easily referenced and visible to everyone within your organisation. In addition, writing them in a clear and concise way means they will be more easily remembered and translated, as any ambiguity is likely to lead to misunderstandings along the way.
Your claims management philosophy needs to detail a commitment to fairness through efficient and effective business processes. This would involve making sure the appropriate expertise is available for the handling of different cases and that there is availability of the right management information that can be reviewed at board level.
Technology can be the enabler for improved claims management and compliance to Lloyd’s standards.
Innovation through technology is advancing the visibility of standards and claims information across supply chains. An example of this is ediTRACK’s software product ‘Milan’ which is being used by insurers and Managing Agents as the repository for claims management philosophy and it incorporates Lloyd’s minimum standards. Access to information is more easily provided to all relevant partners in the extended supply chain as it is web-based and important documentation can be made instantly visible to all staff in order to crystallise and reinforce company ethics and guiding principles.
Milan also guides its users through the claims process and key information is shared in real-time as well as automating tasks and tracking activity in order to drive swift resolution of claims. Furthermore, as it stores all claims information the data can be used to measure against key performance indicators. Inbuilt tools enable easier reporting and analysis for management in addition to business intelligence dashboards. These features help highlight and focus attention on any areas of concern and drive strategic improvements in the management of claims across the complete supply chain.