Int’l. Underwriting Association Pledges Electronic Claims Payment Progress
An article on the Lloyd’s web site (www.lloyds.com) discusses plans by the International Underwriting Association for making claims payment a top priority for 2009. The IUA aims to double the number of new claims processed electronically by member companies by mid-year.
The organization is the world’s largest representative organization for international and wholesale insurance and reinsurance companies. Its goal is to promote and enhance the business environment for such companies operating in or through London.
IUA Chief Executive Dave Matcham explained: “We have made so much progress with market reform that London is now becoming a leader when it comes to improving efficiency and other jurisdictions are copying our processes. But we must maintain the momentum. For instance, 40 percent of all new claims are currently handled electronically by IUA members via the market repository—we aim to see this number double by mid year.”
In its 2009 business plan, the organization also said it “plans to improve the electronic processing and delivery of premiums by speeding up payments to underwriters.”
In November the IUA agreed to support the Lloyd’s Exchange project for electronic risk placement (See IJ web site – https://www.insurancejournal.com/news/international/2009/01/13/96927.htm and https://www.insurancejournal.com/news/international/2009/01/16/97023.htm). Sue Langley, Lloyd’s Director, Market Operations & North America announced the decision to award the task of setting up the system to IBM.
The IUA noted that the “Lloyd’s Exchange will provide a messaging hub that will allow brokers and underwriters to place risks electronically using the common ACORD data standards, reducing the need for paperwork and re-keying information.”
Lloyd’s also noted that the IUA intends to enhance “lobbying on regulatory matters” as another focus this year. It’s concerned with key issues, including Solvency II, reform of insurance contract law and international accounting standards.
Matcham said: “It is widely assumed that the reaction to recent crises in the financial system will be new and wide-ranging regulatory initiatives. We are concerned that some of them may place unnecessary burdens on IUA companies.”
Source: Lloyd’s