Vitesse and LIMOSS, supported by Lloyd’s and the LMA, sign central market contract to enable Faster Claims Payment (FCP)
Managing agents can now sign their individual agreements with LIMOSS and begin to transfer binding authority contracts to the Vitesse platform for claims payment.
“Vitesse has been providing payment and treasury services to the insurance market for many years,” says Phil McGriskin, co-founder and CEO of Vitesse. “There is not a better name in the industry than Lloyd’s of London and we are very proud to be able to now consider the world’s leading insurance and reinsurance marketplace a partner.
“We’re looking forward to working with Lloyd’s on their digitalisation agenda by delivering near instant claim payments for policyholders, enabling huge capital efficiencies and returning 80% of committed capital into a regulated environment for re-investment into the businesses of the 50 plus Lloyd’s Managing Agents / 76 Syndicates we’ll be working with.”
Vitesse and LIMOSS, supported by Lloyd’s and the Lloyd’s Market Association (LMA), are pleased to announce the signing of contracts for a new central market service, Faster Claims Payment (FCP).
FCP is a transformative payment solution which allows Delegated Claims Administrators (DCAs) for Lloyd’s binding authority business to make payments on request, drawing on managing agent funds directly, removing the need for loss funds and the associated cash calls for funding deficits. The solution is leveraged through the Vitesse payment platform, paying claims in minutes instead of days and weeks and in local currencies.
The signing of the central market contract is a critical milestone and demonstrates the successful collaboration between market organisations that is key to the success of the digital vision set out in the Future at Lloyd’s strategy. LIMOSS will now contact managing agents to sign their individual agreements to begin transferring binding authority contracts over to the FCP platform.
Managing agents who onboard in 2022 can start using the service immediately and take advantage of a reduction in costs offered by the LMA for H1 2023.
LIMOSS is delighted to be able to support this modernisation journey and the delivery of digital benefits to the market. FCP has become a market service as a result of managing agents’ commitment to adopt and use the solution. LIMOSS will be supporting the Future at Lloyd’s adoption team to bring the committed managing agents onto the Vitesse platform over the next six months. In addition, LIMOSS will be setting up the appropriate governance to ensure the service meets the requirements of all stakeholders, including:
- Market led governance via a Steerco with managing agents, brokers, Lloyd’s and associations all represented as with other LIMOSS market services
- A change management wrapper applied to release management via LIMOSS to protect the service and ongoing development of the service, ensuring any enhancements are agreed and prioritised by the market
- In addition to BAU monthly service performance reporting, LIMOSS will apply a service assurance framework, providing reporting to market stakeholders in terms of the adequacy of operational and financial controls to safeguard the service
- An efficient contract structure – a single document to sign for managing agents who have already signed the LIMOSS Market User Framework Agreement with a clear delineation between the platform and the handling of funds and payments to ensure LIMOSS is not providing regulated services (LIMOSS not being a regulated entity)
“The launch of the Faster Claims Payment market service is an important milestone for claims processing with tangible customer benefits. LIMOSS is delighted to support the Lloyd’s and LMA claims strategy by contracting with Vitesse on behalf of managing agents and supporting managing agents in their use of FCP going forward.” says Patrick Molineux, LIMOSS Managing Director.
FCP is one of the key milestones for 2022 of the Future at Lloyd’s Blueprint Two programme, which is digitalising the Lloyd’s market to make it better, faster, and cheaper. FCP gives managing agents greater flexibility in their capital management and provides all participants with real-time visibility over claims payments as well as a reduction of associated account and transactions fees.
“Faster Claims Payment will deliver real benefits to our customers and all of the stakeholders in the Delegated Authority value stream by speeding payments to customers and lowering costs for market participants,” said Bob James, Lloyd’s Market Transformation Director. “Now that the contract is signed, we encourage anyone who is not already onboard to start their journey to an FCP future.”
Janine Powell, Claims Director at the LMA, said: “Modernisation is a core element of the LMA’s Claims Philosophy, and we are very pleased to be able to announce this initiative today. The FCP market service is a step change in how claims will be handled at Lloyd’s and brings us significantly closer to delivering the speed, excellence and efficiency promised across market functions in the Future at Lloyd’s strategy.
“FCP will provide greater visibility and improved controls over claims funds and thus support an effective and efficient use of capital across the market. I am grateful to LIMOSS, Vitesse, Lloyd’s and our market partners for helping deliver this vital initiative today.”
Learn more about the solution here: https://www.vitessepsp.com/faster-claims-payments/
