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Faster Claims Payment (FCP)

Faster Claims Payment (FCP)

Overview

FCP is one of the key milestones for the Future at Lloyd’s Blueprint Two programme, which is digitalising the Lloyd’s market to make it better, faster, and cheaper. FCP gives managing agents (MAs) greater flexibility in their capital management and provides all participants with real-time visibility over claims payments, as well as a reduction in associated account and transactions fees. 

What is FCP?

FCP is a transformative payment solution which allows Delegated Claims Administrators (DCAs) for Lloyd’s binding authority business to make payments on request, drawing on managing agent funds directly. This removes the need for loss funds and the associated cash calls for funding deficits. The solution leverages the Vitesse payment platform, paying claims in minutes instead of days and weeks - and in local currencies. 

FCP is now a “live” market service as a result of managing agents’ commitment to adopt and use the solution. LIMOSS is supporting the Future at Lloyd’s and Vitesse adoption teams to continue to onboard market participants to FCP in the coming months. 

What binders are in scope now?

FCP can be used now for the following types of Delegated Authority binders:

  • All Classes of Business and all years of account
  • Payments in over 100 currencies – including e-checks (USA only)
  • Lloyd's singleton and subscription binders
  • New AND active binders – even with existing claims activity (E.g. Run-off)
    • In Scope: Binders created before 26 July 2021 do not need to be registered in DCOM before transferring to FCP
    • In Scope: Binders created on or after 26 July 2021 must be registered in DCOM (except for Line Slip binders which do not need entering in DCOM)
  • Policy order must be placed 100% in the Lloyd’s market
    • In Scope: Co-Leads where binder/section is in scope for FCP and all participants are Lloyd’s MAs
    • In Scope: Continuous Contracts
      • A payment account application form will be required at renewal
    • Out of Scope: Lloyd’s Europe (LIC) and CAD Lineage
  • Same signed lines across all sections OR different signed lines on each section
  • Same DCA for all sections or different DCAs per section
  • Funding accounts in 14 currencies:
  • Coverholders acting as DCA
    • In Scope: Coverholders with claims settlement authority, who do not net off premiums and claims
    • Out of Scope: Coverholders with claims settlement authority, who do net off premium and claims
  • Service Companies
    • In Scope:
      • A BDX must be processed and submitted via ECF
      • Consideration should be taken per territory to ensure all standards are met
  • Consortia
    • In Scope:
      • 100% placed in the Lloyd's market​
      • There must be a BDX processed and submitted via ECF ​
      • Accounts must be opened via the Vitesse manual payment account application form (Binders do not need registering in DCOM)
  • Line Slips
    • In Scope:
      • A DCA or Coverholder must be appointed
      • A BDX must be processed and submitted via ECF
      • Must be 100% placed in the Lloyd’s market

What are the benefits of FCP?

FCP brings benefits to all stakeholders including MAs, DCAs, Brokers and – most importantly – our market clients:

  • Speeds up payments to policyholders by allowing Delegated Claims Administrators (DCAs) to draw on managing agent funds directly
  • Payments can be made in 100+ local currencies
  • Reduction of effort to set up and manage loss funds and participate in cash call processes
  • Opportunity to reduce the amount of money held outside of MA control, removing the need for traditional loss funds
  • Real-time visibility and control over claims payments
  • Remove the need for costly wire transfers to DCAs by brokers
  • FCP Benefit

For a full Cost Benefit Analysis, bespoke to your organisation, please email FCP or speak to your Vitesse Relationship Manager

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