David Matcham, CEO of the IUA, said, « The introduction of a single damages agreement option at the time of placement promises to make claims processing faster, cheaper and more efficient in London. » SCAP is a contractual agreement that allows for quick and efficient authorization of claims and delegates the responsibility for handling a claim to the slip leader, which must be a London market carrier. SCAP is the result of cooperation between the leading brokerage and underwriting communities in the London insurance market – International Underwriting Association of London (IUA), Lloyd`s of London, Lloyd`s Market Association (LMA) and the London & International Insurance Brokers` Association (LIIBA). Although there is already only one claims settlement in the Lloyd`s market, it is not yet typical of the corporate market and it is expected that up to 80% of rights in the London market will fall within the scope of SCAP, drastically reducing reaction times and costs. The Single Claims Agreement Party Model for the London market, a new claims management model that aims to simplify and streamline claims processing, was launched today live in the London market. The new individual debt agreement and related model will allow the Slip-Lead (London) to bind all subscribers to risk if carriers accept the agreement and clause as a directive concept at the time of placement. SCAP can be covered for new risks and in renewal on related risks from 1 February 2018. It will concern less value claims, not complex, with a threshold of £250,000 for the ticket. SCAP Slip Leads must be an (return) insurer authorised in the UK or a Lloyd`s syndicate that operates SCAP to give SCAP Slip Lead the power to determine subscribers` rights to the same MRC, if those subscribers agree to take over SCAP and participate in the risk on the same terms (with the exception of premium and brokerage). The SCAP Slip Lead cannot determine claims on behalf of insurers who participate in the risk by another note or who have different conditions. Insurance and reinsurance investments are due to SCAPs, but binding authorities, proportional contracts and quota contracts do not fall within the scope.
Subscribers have considerable power to interrupt the complaint handling process within the scope if they are concerned about any aspect of that process. After bringing their concerns to the Slip Lead, both parties should do everything in their power to resolve this issue. However, if the disagreement persists after 28 days, the claim in question leaves the SCAP agreement and is considered on the usual basis of the claim agreement applicable to all other claims of the London Market. David Gittings, CEO of LMA, added that the single-agreement model « will make claims resolution more efficient in the London market and offer an improvement in service and customer experience. » Subscribers must initiate dispute resolution proceedings against slip lead with respect to any disagreement on the determination of claims. It is also open to supporters to initiate proceedings for alleged breach of their obligations under the SCAP Agreement. In a new report, the Cyber Underwriting Group (IUA) of the International Underwriting Association has requested the registration of damage data. When SCAP is integrated into a risk contract with multiple insurers, the lead insurer has the exclusive authority to manage and determine claims. Subscribing insurers will be significantly less involved in claims management, but will need to be kept informed with basic claims information and will have the right to request further information if necessary. Robust mechanisms to address damage issues and initiate dispute resolution proceedings should also ensure the safety of follow-up insurers who are concerned about the significant transfer of rights under the agreement.
Participation in a single agreement is optional and may be considered by brokers and carriers at the time of placement….