Claims is being elevated to boardroom level. Sub-principle 6 requires robust executive governance and oversight of Claims, placing it alongside underwriting, reserving, governance and culture. Failure in Claims Management could directly restrict a syndicate’s ability to write or grow business.
For organisations that have lived through multiple market cycles, complex loss environments and increasing regulatory scrutiny, the shift will feel like a formal recognition of reality. Lloyd’s is making a clear statement about what good looks like and where Claims truly sits in the value chain.
Claims as the Destination, Not the Afterthought
Anyone who has spent time in insurance knows the importance of Claims, but, for a long time, and despite many statutory and regulatory improvements over the past two decades, that importance can often seem merely theoretical. Lloyd’s latest move suggests the market may finally be closing the gap between what it says about claims and how it actually treats them.
Think of a long car journey with a child. The question ‘are we nearly there yet?’ is less about impatience and more about reassurance - about whether the destination is real or just promised. For policyholders, Claims is that destination. Not the policy wording, filed away after placement, but the moment when insurers, brokers and experts show up in stressful times of uncertainty and financial risk.
It is a distinction that becomes clearest in claims-led environments, where outcomes, not policy theory, define value. That is where trust is built. Or lost.
The Reality Behind the ‘Promise to Pay’
Paying valid claims fairly and promptly is, of course, essential. But focusing solely on indemnity payments risks losing sight of other valuable services offered by insurance Claims professionals.
High-performing Claims teams deliver far more. They challenge ineffective decision-making and provide insights into underwriting and broking, enhancing future placements and outcomes. They provide services and practical support including:
Tailored Claims advice and insights on potential risks and preparedness given at pre-placement meetings and new client pitches
Early guidance and support from experienced and accessible subject matter Claims experts for distressed policyholders when things go wrong
Immediate access to a range of specialist technology, legal and forensic accounting experts in complex situations like cyber attacks
Robust advocacy on behalf of policyholders in both defending claims made against them and also pursuing optimal outcomes under their policies
This is what Lloyd’s is signalling through Principle 4 - Claims is not a back-office function but a strategic capability. Experienced Claims teams working alongside brokers, rather than at arm’s length, make a big difference. Indeed, overall Claims performance now becomes an even bigger differentiator for those insurers and brokers who get it right.
Why Governance Matters
Lloyd’s is making it clear that Claims performance is no longer something that can be delegated downwards and reviewed retrospectively. It must be actively governed, measured and owned. That includes:
The quality and experience of Claims professionals
How Claims services and systems are resourced and developed
How delegated and third-party Claims arrangements are overseen
How data, insight and outcomes are monitored and acted upon
For brokers, MGAs and insurers alike, this raises the bar and exposes where ‘promise to pay’ messaging is not backed up by operational reality. Across the market, many insurers proudly advertise their commitment to paying claims. Yet too often, these promises are tested and found lacking when complex or contentious claims arise.
In practice, this can show up as delayed or non-existent engagement, narrow interpretations of coverage or reluctance to revisit early decisions even when facts evolve. These moments shape client experience and define broker relationships. Under the new Lloyd’s framework, they increasingly shape regulatory outcomes, too.
Consilium’s Claims-Led Model
It is against this backdrop that Consilium’s claims-led model shines - built deliberately around expertise, governance, advocacy and bespoke claims management systems rather than retrofitted to meet new expectations.
At Consilium, Claims has long been treated as core to the business. That philosophy aligns directly with Lloyds’ revised expectations, not because it had to, but because it always made commercial and human sense.
As the business grows internationally, Consilium continues to invest in:
Specialist Claims expertise
Recruiting deeply experienced subject matter experts, including legally trained professionals with extensive market and jurisdictional knowledge
In-house technology designed for Claims
Through our ATOMX platform and Claims functionality within QUANTUM, improving speed, accuracy, transparency and insight
A genuinely client-centric approach
Supporting brokers and clients through the entire lifecycle of a claim, using ‘lessons learned’ to develop the product offering
This mirrors the Lloyd’s emphasis on attracting, retaining and developing high-quality Claims professionals and delivering proactive, measurable claims management.
So, Are We Nearly There Yet?
The Lloyd’s revised Principle 4 means Claims is no longer something insurers can afford to treat as a necessary inconvenience. It is now an explicit measure of competence, culture and credibility at the very top of an organisation.
For those who have already embedded strong Claims governance, experienced leadership and genuine client advocacy into their operating model, this change is likely to feel more overdue than disruptive. For others, it will require a fundamental rethink of both mindset and process.
What Lloyd’s is ultimately pushing the market towards is simple: fewer defensive positions, earlier engagement and stronger collaboration. Not perfection, but accountability. So no, we are not quite ‘there’ yet. But arguably for the first time, the route is clearly signposted, the expectations are unambiguous and Claims has been given the strategic weight it has long deserved.
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