New Electronic Claims Processing System Falls Short of Target
The London-based Market Reform Group (MRG) has announced that use of the Insurers Market Repository for processing electronic claims files (ECFs) in the London market is behind in reaching its set target, and Lloyd’s of London has warned business that action will be taken against them if they drag their feet in adopting the system.
The new system enables claims and premiums to be processed more efficiently in a paperless form, and is a key priority for market reform, said MRG. While use of the system by managing agents and brokers currently stands at 45% of the total market volume of in-scope claims, up from just 5% at the start of the year, the figure still falls short of MRG’s target of 60% for the end of the third quarter, a fact that will make the end-of-year goal of 100% more challenging, said MRG.
Sue Langley, director of Lloyd’s market operations and North America, said that Lloyd’s “shares the disappointment” with MRG. “Businesses that are slow to adopt ECFs and A&S (Accounting and Settlement) are letting down the market and could potentially undermine the progress that we are making and poor performance will be acted upon,” warned Langley.
Langley said, “Reforming our processes remains essential to ensuring our future success and competitiveness. We simply have to change.”
Published on October 16, 2007
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