LIMOSS has signed a contract with the payment service provider (PSP) Vitesse to create the new Faster Claims Payment (FCP) central market service.
The contract is being supported by LIMOSS parent companies Lloyd’s and the Lloyd’s Market Association (LMA).
The FCP will allow delegated claims administrators (DCAs) for Lloyd’s binding authority business to make payments on request, drawing on managing agent funds directly.
The payment solution hopes to eliminate the need for lost funds and the associated cash calls for funding deficits.
Managing agents will sign individual agreements with LIMOSS and transfer binding authority contracts to the Vitesse platform for claims payment.
Managing agents using the FCP will benefit from flexibility in their capital management, with the service providing participants with visibility over claims payments as well as a reduction of associated fees.
Speaking on how its provision of claim payments for policyholders will assist Lloyd’s in its digitalisation agenda, Vitesse co-founder and CEO, Phil McGriskin, describes how the FCP will enable “capital efficiencies and 80 per cent returns of committed capital into a regulated environment,” which will be reinvested into the businesses of the 50 Lloyd’s managing agents and 76 syndicates the PSP works with.
In order to meet the necessary governance requirements, the service will be directed by a LIMOSS-appointed Steerco which will adhere to BAU monthly service performance reporting.
In addition, LIMOSS will apply a service assurance framework and change management wrapper, which will provide reporting to market stakeholders in terms of the adequacy of operational and financial controls to safeguard the service.
Describing the FCP as a “step change in how claims will be handled at Lloyd’s,” LMA claims director, Janine Powell, explains how the market service will “bring 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,” she continues.
Image and article originally from thefintechtimes.com. Read the original article here.