UK Lloyds Claims Settlement Update

On Jun. 17, UK Lloyds issued bulletin on settlement outside Velonetic.

  • UK Lloyds issued a bulletin entitled Settlement of claims outside of Velonetic due to processing restrictions, which replaces market bulletin Y5355 published in Dec. 2021.
  • Follows UK Lloyds Dec. 2021 bulletin on settlement outside Xchanging, see #123465.
  • New Bulletin
  • Provides operational guidance to managing agents on how to settle a Lloyds Europe claim where Velonetic services may not be used due to processing restrictions.
  • Such restrictions are set out in communication 2020_005 (available to subscribers).
  • Process aims for minimum disruption, as managing agents to use current market practice of direct settlement, adds mandatory regulatory requirement on Lloyd’s behalf.
  • Bulletin describes operational process for settling these claims, does not replace any existing guidance provided/regulatory requirements re what business can be written.
  • Applies for all business written by Lloyd's Insurance Company, solution set out should be followed only when Velonetic cannot process a valid claim due to the restrictions.
  • Frequency of such claims is expected to be low, process is not related to the ongoing Blueprint Two Program and any related transformation, cutover, contingency activities.

Regulators UK Lloyds
Entity Types Corp; Ins
Reference RW Bul Y5355, Bul Y5436, 6/17/2024;
Functions Claims/Accelerated Benefits; Compliance; Financial; Legal; Operations; Reporting; Risk; Trade Reporting; Trading; Underwriting
Countries United Kingdom
Category Exchange Venue
Products Corporate; Insurance; Insurance-Casualty; Insurance-Health; Insurance-Life; Insurance-Property
Regions EMEA
Rule Type Guidance
Rule Date 6/17/2024
Effective Date 6/17/2024
Rule Id 216094
Linked to Rule :123465
Reg. Last Update 6/17/2024
Report Section UK

Last substantive update on 06/19/2024