“The introduction of an option to provide for a single debt agreement when offering promises to make claims processing faster, cheaper and more efficient in London,” said David Matcham, CEO of the IUA. The SCAP protocol was transferred to S80 in February 2018. This is a contractual provision that gives exclusive responsibility to the Slip Leader. In recent discussions on the treatment of EEA rights, the SCAP protocol was reviewed and it was found that lloyd`s Brussels is currently qualified for the purposes of the SCAP under its status as “authorized to execute and/or execute insurance contracts in the United Kingdom”. For the same reason, any EEA insurance company currently licensed to conduct insurance transactions in the UK would be considered a SLIP Leader for the purposes of the SCAP. Participation in a single agreement is optional and will be reviewed by brokers and carriers at the time of the offering. “The grinding community is pleased that we can move forward with the Single Claims Agreement as it will accelerate the liquidation, agreement and payment of small and medium losses in the London subscription market for the benefit of customers,” said Christopher Croft, CEO of LIIBA. The objective of the SCAP protocol is to implement a more efficient process for resolving lower-quality non-complex claims ($250,000 or less) when several contracting parties are in place. The new agreement on individual rights and the model associated with it will allow the London skid to link all subscribers to risk if the airlines accept the agreement and clause at the time of the placement as a political concept.
Inga Beale, CEO of Lloyd`s, said: “In a competitive global sector, customers want and expect the London market to be easier to achieve. By making the most critical part of our commercial offer, the resolution of claims, simpler, it means that London can remain an attractive offer. According to an initial idea by LIIBA, this cooperation between LIIBA, LMA, IUA and Lloyd`s “will improve London`s claims service for re-insured/insured,” the statement said. There will be no impact on Lloyd`s Brussels` business: Lloyd`s Brussels has a licensed branch in the UK and will continue to be regarded as an authorised UK insurer and therefore a Slip Leader. Air carriers should ensure that all insurers and claims agents are fully aware of this position. The uncertainty surrounding the position of Brexit means that this situation should be reviewed further. Air carriers are also reminded that the SCAP clause is not a binding clause and that its adequacy to its use in each contract should continue to be discussed on a case-by-case basis with brokers.