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Insurance Business | 24 Mar 2016, 08:20 AM Agree 0
Lloyd’s of London announced pre-tax profits were down 30% compared with last year as reduced margins in underwriting and lower investment yield hit the business
  • Street Broker | 24 Mar 2016, 09:08 AM Agree 0
    Aha! I always wondered why it takes many of the Lloyd's Syndicates so long to pay claims even after Indemnity has been granted ...
  • DC | 29 Mar 2016, 03:56 PM Agree 0
    Indeed, there are many reasons why it may take reasonable time for a claim to be paid after indemnity has been granted. A reduction in pre tax profits is not one of them.
  • Street Broker | 29 Mar 2016, 04:22 PM Agree 0
    Dear DC,

    (1) Please define what length of time is a "reasonable time frame". (2) Please advise some of the "many reasons" bearing in mind the Insurers' respective Codes of Conduct.
  • DC | 30 Mar 2016, 11:35 AM Agree 0
    Hi Street Broker,

    Happy to assist you,

    (1) A ‘reasonable time’ simply depends upon the matter at hand and what needs to be done to process the claim in a timely manner. It refers to the plain and ordinary meaning that we apply to what is 'reasonable' and in the interests of resolving the claim in the interests of the Insured. As you will be aware, the Insurance Code of Practice does not speak of 'reasonable time' (a lay term) but contains many provisions relating to timeliness and in keeping the Insured regularly informed with regard to the type of claim and the specific matters involved. Refer Section 7 ‘Claims’. Also see the duty of the utmost good faith Section 13 ICA which generally underpins the Code. In short, today there are many mechanisms in place to safeguard an Insured’s position when it comes to claims processes including perceptions of ‘what is’ timeliness.

    (2) Reasons affecting when a claim may be able to be paid might include the nature and complexity of the claim, for example is it a small straightforward first party matter or is it complex or another class of claim type altogether. Post the granting of indemnity, have all enquiries been able to be completed, has the Insured provided its information, are agents or lawyers or experts required to do something to facilitate the process, are third party interests involved. What will be important to the client is that indemnity has already been granted with an end in sight. While what is ‘reasonable’ is highly subjective and the essence of which is adequately addressed by the Code, if the Insured along with broker is kept informed any concern about a claim can be addressed. A broker being able to convey these matters to the client is also pivotal to providing great service and enhancing the financial industry as a whole. To further understand the insurance claims process there are also many great online resources including starting with NIBA and ANZIIF. Many of these are brokers specific.
  • Street Broker | 30 Mar 2016, 12:44 PM Agree 0
    Dear DC. I should have been more specific. I agree completely with what you say. The delays I was referring to are where after all the processes you mention have been completed ... and it's time to sign the cheque and that process takes 4 weeks. The Underwriting Agencies apologise & 'understand your client's position, we really do' but 'we have to wait for London to authorise' or 'we really don't understand why London is taking so long to remit funds.' There is simply no excuse for those delays
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