Lloyd's Relaunches Direct-Fees Scheme

The Lloyd's Claims Office (LCO) is relaunching its direct fees scheme, effective October 1998. Following the decision of some brokers to withdraw from the fee collection process, LCO is expanding the ten-year-old scheme to enable underwriters to pay their experts directly, rather than via the broker. The group says this will benefit the market as a whole, as brokers will be able to reduce their administrative costs and the experts will get an improved service. LCO aims to pay its bills within 30 days in return for a discount which will enable the scheme to be self financing.

Bob Moore, LCO general manager explained, "LCO has been operating a very successful direct-fee scheme for over 10 years now, but we have to listen to our customers' needs and move with the times. By taking responsibility for the payment of these fees from the broker, we have an opportunity to improve the service whilst at the same time reducing the market's operating costs, which is in line with the Lloyd's Market Board priorities for 1998."

Peter Murray, LCO head of non-marine claims, said, "We are working very closely with the London Company market and London Processing Center to ensure that we have the same procedures in place. In the short term, this should simplify matters for the experts and could enable us to move to a common service in the future."