Lloyd’s announced the launch of its new shared service, Volume Claims Service (VCS), which it said is “part of its overarching Claims Transformation Program, a fast and fair claims handling service which offers the market an enhanced cost efficient claims experience for handling non-complex claims.”
Lloyd’s noted that “VCS is designed to handle high volume, low value claims which make up around 85 percent of total claims in the Lloyd’s market. The service is provided by two competing third party service providers; Xchanging and Crawford & Company, both of whom will operate under upper quartile service level agreements.”
David Lang, Lloyd’s Head of Claims said: “VCS enables Managing Agents to outsource the resolution of non-complex claims to two service providers offering competing levels of service and price. The combination of fixed service level agreements and differentiated offerings from Xchanging and Crawford & Company provide the market with a new and compelling claims resolution alternative.”
The bulletin said: “Ten Managing Agents supported the VCS project team in the development of the operational and commercial terms of the service. If acceptable commercial terms can be reached, these Managing Agents may adopt the service for certain classes of business.”
Source: Lloyd’s of London