Claims transformation Programme UPDATE LMG 18 th November 2010 Lloyds Performance Management...
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Transcript of Claims transformation Programme UPDATE LMG 18 th November 2010 Lloyds Performance Management...
claims transformation Programme
UPDATE
LMG 18th November 2010
Lloyd’s Performance Management Directorate
© Lloyd’s2
Agenda
Transformation vision
Core components
2010 Pilot
Pilot Performance
Transformation Programme 2011
Enhanced Governance
Claims Business Systems Options
Claims Talent Initiative
Consultation
© Lloyd’s3
Vision for Claims within Lloyd’s market
Lloyd’s reputation for fast and fair claims handling
Deliver professional excellence
Excellence in Underwriting Excellence in Claims
• Excellence in Operations• Capital advantages• Security and strong market ratings• Global brand
Lloyd’s Competitive Advantage
Core Transformation Components
• Enhance current segmentation – increase efficiency • Introduce choice
• Strengthen Corporation’s governance role
• Review Claims Business Systems Options
• Increase flexibility in notification and settlement
Designed to deliver:
• Better customer experience/more transparency
• More scope for differentiation
Commencing with 2010 Pilot
New ECF claims on new contracts incepting on or after 01-01-2010
For defined risk codes, excluding Binders and Singletons
Marine (excluding Cargo and Energy), Property Direct & Fac, Casualty Treaty
All subject to the 2010 Pilot Claims Scheme
Three tranches: Standard (£0-100k), Mid (£100k-5m) and Complex (>£5m)
Pilot Framework
Segmented claims response
Provision of choice
© Lloyd’s6
Success Criteria
Four key measures:
1. Speed
2. Quality
3. Market Perception
4. Cost
Speed considered the most important measure
Pilot deemed a success if claims handled 25% morequickly, provided that pilot performance in each ofthe other areas neutral or improved
© Lloyd’s7
Pilot Volumes as at Q3 2010 2,500 Pilot Claims & 4,500 fully completed transactions
Class of Business dynamics:
Marine (46%)
Property D&F (45%)
Casualty Treaty (9%)
Categories:
Standard 82%
Mid Tranche 15%
Complex 3%
Segmentation ratios in line with expectations
© Lloyd’s8
CTP Pilot Performance - Overall
5.00
7.15
10.23
14.24
16.47
18.0717.13
15.37 15.38
13.38
0
5
10
15
20
25
30
0
200
400
600
800
1000
1200
1400
January February March April May June July August September October
Cale
ndar
Day
s
Vol
ume
of C
ompl
ete
Tran
sacti
ons
CTP Transaction - Volumes & End-to-End Transaction Times by Month
Completed Transactions Avg Trans Duration Baseline (25 days) Success Criteria (18.8 days)
© Lloyd’s9
Pilot Score Card
Overall reduction in end-to-end transaction times – exceeds target
Reduction in average response times across all parties
Standard tranche - average end to end transaction time reduced
Triage accuracy rates are up
Quality of claim assessment up (mid/complex)
Pilot working group to discuss impact arising from new roles of leader, 2nd lead and XCS
Training for the market and revised Pilot guidelines will be developed to address issues identified
Pilot results are proving the concept of segmentation & choice
© Lloyd’s10
Transformation Programme – 2011
Full 2010 year results to be assessed by Lloyd’s early 2011
Consideration of any expansion will be made
Enhanced governance framework will be shaped
End vision implementation plan published early 2011
Volume claims service standards (published Q1 2011)
Framework for approval of delegated lead and 2nd service providers (Q2 2011)
Claims Talent initiative being launched
Pilot continues into 2011
© Lloyd’s11
Enhanced Governance
Framework
Revised and enhanced Minimum Standards
Lloyd’s claims service targets
Service provider approvals
Performance audits & wider reviews
Enhanced & targeted MI
With Lloyd’s continuing to:
Invest in more talent
Provide claims leadership
Raising the bar
© Lloyd’s12
Claims Business Systems Options Modern technology is critical to providing a
competitive claims service
Flexibility is vital
Importance of this project can not be underestimated
In 2009:
- the Lloyd’s Claims Team defined the market’s business requirements
- conducted a tender process based on those requirements
The Future Processes Project is now validating this work on behalf of the London Market
It is critical that the pace of this work does not diminish
© Lloyd’s13
*Talent Initiative – 50 professionals over 5 years
Graduate:
12 month 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
Market Practitioner:
12 month programme
Aimed at current adjusters with 2-5 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
* subject to ratification by Market Steering Group
Examinations: LLMIT & CILA / DipCII Examinations: ACII
© Lloyd’s14
In closing…consultation with stakeholders
Ongoing market consultation remains vital
Managing agents
Brokers
LMACC
Future Processes Working Group
LMG
XCS
LMA sector groups
Service providers/experts
Lloyd’s market is committed to continuous improvement
© Lloyd’s15
Analysis of ECF data and discussions with Pilot working group to discuss issues arising from new roles of leader, 2nd lead and XCS
Training for the market, discussions with XCS and revised Pilot guidelines will be developed to address issues identified