Dave Matcham

Improving Claims Handling

The top priorities from our 2009 business plan were publicised this week. Improvements in claims processes, better premium payment and focused lobbying comprise the top 3, deliberately so to reflect our members’ own priorities. They also complement the 2009 workplan of the Market Reform Group, ie. finish current electronic claims and premium initiatives and move onto the next strategic stage of reform – electronic placing.

Claims reforms are perhaps the most interesting. We have operated an electronic claims agreement and settlement system (CLASS) for over 20 years and it has served us well. But it needs radical overhaul, beginning will full integration with the market repository. We have electronic claims files now however we are currently considering an enhanced version, ECF II, which should improve functionality and align better with the Lloyd’s equivalent.

Later this year Lloyd’s will publish its own claims development plans and we look forward to working with Lloyd’s towards a cross-market global claims platform. We are some time away from that stage therefore a more user friendly ECF is a necessary stepping stone, hence the priority for 2009.

A better CLASS of Claims Handling

Xchanging hold their annual conference this week, which promises to be a great opportunity for market reform progress and strategy to be discussed by all sections of the market. Much progress has been made since the conference 12 months ago and a widespread cultural acceptance of new processes and technology is clearly in evidence.

20 years ago, back in the days when I worked in the treaty department of Xchanging’s predecessor back offices, the first electronic claim was processed via the non-marine version of CLASS. Groundbreaking stuff – 20 years on, well over 1,000,000 claims have passed through CLASS. With the new repository in place and the market committed to use electronic claim files it presents a similar position to 20 years ago. At that time companies and brokers were preparing for major change, and it is no different this time around. With pressures of competition from other centres and the pressing need for efficient processes, company ECF usage will grow rapidly. We are already at 32% of all new claims – we aim to double that figure by the end of the year.

Hurricane Ike has presented a “live” example to test the resilience of the repository from both a technology and cultural perspective. Both seem fine at the moment however there is no room for complacency as the IMR reaches its own 1,000,000 claims files.