Data from Gracechurch’s latest study reveals that claims service has improved gradually since 2009. The research also reveals that there is a group of 7-8 high performing larger Lloyd’s insurers whose claims service is improving much more rapidly than the average; in fact without these the performance is fairly flat.
The finding is significant in that it is based on over 6000 individual broker service ratings collected since the beginning of 2009. The benchmarking study is used by many of the leading insurers to help in figuring out howto improve claims service.
The study also shows that a gap has opened up between Lloyd’s and the companies market with Lloyd’s on average outperforming companies on service.
The study’s findings were welcomed by the CEO of the Lloyd’s Market Association, David Gittings, whose organisation has been at the forefront of efforts to boost claims performance in the Lloyd’s market.
Gracechurch notes that more and more Lloyd’s insurers are switching on to delivering better claims service for brokers and this is driving improving standards.
Ben Bolton MD of Gracechurch commented: “When we first started measuring London claims service in 2005 it was distinctly mediocre; now looking at 2011 data an increasing number of insurers have the majority of their brokers ratingtheir service as‘excellent’ - that represents exemplary service for any market and shows what can be achieved.”
But Bolton warns: “The average improvement is good news but service improvements are not consistent across the board and there is still a rump of poor claims service providers who seem reluctant to accept thatgreat service is a vital component of London’s high quality reputation; this is creating a real drag on the pace of improvement. The other issue is that insurers are often too modest about publicising good performance.”
David Gittings of the LMA commented; “This is again positive news for Lloyd’s on claims – the study also highlights positive acceptance of ECF as delivering real benefits for brokers and client, showing that process improvements are contributing too – we must though keep up the pressure to make sure that we are the leading market in claims service - and recognised as such.”
Claims performance in the London market has been the focus of a number of initiatives including ECF2 and the Market Processes project.