Lloyd’s has launched its faster claims payment pilot. The pilot will be testing to explore the effectiveness of facilitating claims in just a few minutes for delegated authority business.
“We continue to make steady progress in the ‘recovering from loss’ journey for Delegated Authority business, with the launch of our Faster Claims Payment pilot,” Lloyd’s said in a statement. “Over the next three months, nine market participants will work with us to address a consistent pain point – speed of payment. The pilot is designed to test the ability to pay claims within minutes, rather than days.”
The market participants mentioned have not yet been announced.
Speed of payment has indeed long been a frustration for the market. Innovation to address such costly blockers is very much welcomed.
Lloyd’s continued: “We will gather critical learnings and feedback from the pilot group and other market participants, to understand what the new way of working will mean for them so that as we deliver a scalable solution we offer the right levels of support across the market.”
Historically, faster payments have greatly benefitted standard P&C insurers. So, if all goes well, both customers and insurers can look to benefit from the modernisation within the market; with faster transactions pleasing everyone.
Until Lloyd’s reveals more over the coming months; it’s “watch this space”. We certainly will be!
Why will faster claims payments be such a benefit to insurers?
The most obvious benefit of speed is the increased cost-saving involved when a claim is settled sooner. Additionally, faster payments define either a great customer experience or a terrible one. Customer experience in today’s demanding world has significant financial implications. A positive claims experience increases both customer retention and acquisition; solidifying current and forecasted revenue for the insurer.
A lengthened claims experience can be costly for the insurer; as more claims leakage and overheads can accrue the longer a claim is ‘open’ for. This has a negative impact on the customer and the overall reputation of the insurer in the market. Faster claims payments can negate these pain points for everyone.