Rob McHaffie Building Bridges
Since 2001 we have been using our local knowledge to provide superior solutions for Lloyd’s of London. Our local knowledge, combined with a deep understanding of the Lloyd’s market requirements, means we can provide local infrastructure to support Lloyd’s coverholders in Australia.
We understand Lloyd’s reporting requirements; we have a thorough understanding of GST and we can assist coverholders with their GST obligations; plus we provide a wide variety of value adds including risk management, data mining, consultation on underwriting and wordings and broker and staff training. By maintaining fully audited escrow accounts and live, internet-based reporting we can smooth the process for claims collections and payments.
By tailoring reports to individual requirements and allocating separate passwords and user-names we can allow Syndicates to capture their full suite of business or alternatively allow silo reporting to all stakeholders from coverholder, Lloyds broker and Syndicate/Insurer.
As an example of the valuable market information we provide, since late 2007 Proclaim has been showing through detailed analysis of working losses that average awards and legal spend in liability claims were both steadily increasing. This was in the face of market consensus that tort reform had effectively reduced the frequency and cost of claims.
But at the end of the day, the key reason more Lloyd’s underwriters retain us over any other Australian Claim Management company is because of the results we get. We demonstrate our expertise through a consistent set of KPIs and data measures which we are happy to benchmark against other TPAs that may be used in Australia.
With strong technical expertise, over 10 years of experience in Australia and a wide range of clients, we apply the knowledge we learn from our clients to benefit London underwriters, and effectively bridge the distance between Australia and London.
A liability scheme was being managed by a coverholder and their designated lawyers. The law firm was the notification agent for the scheme, so all claims eventually found their way to them. We were managing other schemes for this underwriter at the time, and they noticed that the scheme being managed by the law firm had:
- A higher rate of litigation;
- LAE (legal and loss adjusting costs) that were double the costs on other comparable business; and,
- No effective or accurate claims bordereaux reporting.
After close analysis of the data the underwriter switched the claim process so that the claims would be effectively managed by claim management specialists. Consequently there were significant savings in legal costs. In addition, there was a saving in time spent by staff in London as fewer claims escalated as our claim management includes strategic recommendations on claims taking into account local conditions – at all times trying to avoid escalation in legal and other associated costs
CASE STUDY 2
We now manage all public liability claims for a Lloyds syndicate which previously managed the claims from London, using resources like adjusters and lawyers to control the claim locally. There were two problems arising – as hard as they tried to control the claims from London, difficult claims seemed to become messier, and loss adjustment and legal expenses were blowing out.
In addition, insured companies and their brokers were unhappy at the lack of support on the ground.
Proclaim worked with the syndicate to build a responsive claim model in Australia that:
- Provided support for brokers and their clients on the ground in Australia
- Marshalled local resources such as loss adjusters and lawyers selectively - and strategically managed their roles
- Provided clear lines of reporting and authority to London
- Established an escrow account so claim payments would not be delayed (see above for more information on Loss Funds)
- Gave them on-line and monthly reporting that provided all necessary claims information
As a result there was an increase in service levels, a reduction in LAE and claim costs, and better and more strategic information for claims staff and underwriters.
"Proclaim work very hard to prevent any claimant from going to lawyers and having a PIPA notice being served on our insured. The model used by Proclaim in dealing with liability claims is probably the best I have seen in all the years I have been involved in liability claims. They do not waste money. While an insured may not see that is the case when they have had to pay their excess there are benefits in competitive premiums being maintained in the liability market by adopting a pragmatic and commercially sound approach to liability claims."
Charlie Foley, ASR Underwriting