London insurance market goes electronic

London insurance market adopts electronic filing system

The London insurance market aims to process 60 per cent of claims electronically by the end of September, with widespread adoption by 2008.

Lloyd’s of London hopes to eradicate paper in the market with a new electronic claims files (ECF) system to store data.

The system is now being used by all Lloyd’s managing agents and brokers to make the whole claims process faster and more efficient.

The ECF initiative allows claims to be processed without the need for brokers to carry volumes of paper files between underwriters and Xchanging, the company that provides adjusting and processing services to the Lloyd’s market.

Head of the market reform programme office Andy Brooks says the ability to process claims electronically is a major milestone in reforming the London market.

‘It marks the beginning of the end of the huge piles of paper you see brokers carrying each day,’ he said.

The initiative is sponsored by the Market Reform Group and reaction from brokers and carriers has been positive, recognising that time and efficiency savings can be achieved.

The system was initially tested on 12 managing agents and five brokers before it was rolled out to the whole of the Lloyd’s market.

International Underwriting Association firms have been using claims agreement and settlement systems for some time but they are now piloting the ECF infrastructure and the repository will be extended to all members.

Director of business process and change management at Lloyd's, Steven Haasz, says reforming and modernising the processes used by the Lloyd's market remains a key priority.

‘This electronic filing cabinet will remove a significant amount of paper from the system and streamline the whole process,’ said Haasz.

‘It is a significant step towards a truly modern market.’