Each underwriter will record details of the risk underwritten for his own records.
G2C Lloyd’s Policy Signing Office
When the slip is complete the broker returns to his office and has the policy prepared in accordance with the slip. The policy and slip are then submitted to Lloyd’s Policy Signing Office (LPSO) where the policy is checked with the slip and signed on behalf of all syndicates. Accounts are prepared monthly for the syndicates and brokers from the data recorded at the Policy Signing Office.
G2D Claims
The Lloyd’s broker also provides a service to his client in the settlement of claims. He negotiates with the staff of a central office, the Lloyd’s Claims Office. Lloyd’s Claims Office (LCO) was formed in 1992 by the merger of the three claims offices which has previously served the aviation, marine and non-marine markets; namely, Lloyd’s Aviation Claims Centre (LACC), Lloyd’s Underwriters’ Claims and Recover office (LUCRO) and Lloyd’s Underwriters’ Non-Marine Claims Office (LUNCO)
LCO consists of claims departments, the Recoveries Section and the General Average Section.
The claims departments are involved in the handling of each claim from the first advise to final settlement. Once the broker has been informed of a casualty or potential loss, he will advise the leading underwriter and LCO of the details and will obtain any relevant instructions.
LCO will check the claim and policy details and enter the appropriate information into the claims office computer systems. Thereafter, LCO will be contacted as necessary with additional information and will give, or confirm, further instructions on awide range of issues concerned with minimizing the loss or with the presentation of the claim.
The Recoveries Section acts for Lloyd’s marine underwriters and insurance companies, both at home and abroad, in respect of claims against bailees of cargo (for example, shipowners, airlines, warehouse keepers, inland hauliers, etc.).
In addition, the General Average Section protects cargo interests in relation to general average and salvage guarantees and collections effected from the underwriters concerned. The Section is also authorized to settle general average contributions and salvage claims submitted by Lloyd’s broker.
G2E Technology at Lloyd’s
Lloyd’s is working with the entire London market to create a unified processing structure. Moving away from a paper-based insurance market to a fully electronic environment is projected to reduce costs of processing by around one third.
The use of personal computers within the Lloyd’s market has increased dramatically in a short space of time. Technology now plays a key role in all areas of Lloyd’s – in the broker’s back office, on the underwriting bow, in the agency back office and in the centre itself.
CASS, the Claims Agreement Support System is intended to streamline the claims agreement process. Each claim registered is held in an electronic folder with a full index of the claim’s history. The index has an entry for every item irrespective of whether it is held in paper or electronic form. The electronic folder is routed through the agreement process in accordance with the 1994 Claims Scheme.