Faster Claims Payments (FCP) provides centralised transparency and supports the reconciliation of your Market Delegated Authority (DA) committed Funds Position
Lloyd’s business and the proportionate DA share (over 40% in 2026) of this continue to grow at pace; with DA expected to be the majority in the near term. Lloyd’s recent confirmation that approximately £1.7bn of loss funds are held by Delegated Claims Administrators (DCA) across the world highlights the lost opportunity for Managing Agents (MA) – a delta which will continue to grow as an ever-greater share of capital is directed to DA markets. Lloyd’s recent escalation of Claims to a hurdle principle – and a specific focus on delegated claims – means it has never been more important for MAs to understand and reconcile where all their DA funds are held – to ensure they have the right funds, in the right place at the right time to meet the needs of the market.
FCP is the market solution to these problems. Powered by Vitesse, the solution automatically tops up funds based on the actual claims paid – thereby removing the need for MAs to manually manage and top up funds based on time consuming Bordereaux (BDX) processes. The platform gives MAs real-time visibility over all DA funds held globally with liquidity held only in Tier 1 banks across the world. Claims, Finance and Underwriting teams are given a real time view of claims payments and are no longer dependent on waiting on either a monthly or quarterly BDX process to understand the claims incurred position. Crucially, the automatic top ups mean MAs can return up to 80% of the funds held in loss funds (£1.7bn across the market) back within their own control driving business value in their Syndicate Trust Accounts, with funds automatically topped up based on exact claims paid in the period.
“FCP provides Liberty with a one-stop-shop to have a simple, complete, real-time view of all funds committed on the DA book.” Allan Pinto from Liberty Managing Agency notes.
Historically, Finance tracked funds and Claims tracked payments. Neither had the full picture until reconciliation, by which point the outstanding items due to various issues resulted in either write offs or the resolution taking up resource time over a prolonged period. FCP brings both worlds together, in real time. Finance & Risk have a real-time view of all funds. Claims and the Underwriting teams have a real-time view of claims paid and binder performance. Once the binder is concluded, onerous, time consuming and costly reconciliations that applied to loss funds are not required and there are no funds with DCAs needing to be transferred back to syndicates.
“FCP has proved invaluable for Finance as it has given full visibility of all our committed DA funds via FCP as Liberty continues to scale our FCP usage. The finance community must be able to show a fully reconciled position on all our DA funds as these values continue to increase across the Market.” continues Allan.
With FCP, MAs can see their entire global spend and distributed fund balance in one real-time statement — not at end of life cycle of the loss fund, The Financial Summaries Report (provided free of charge by Vitesse to all MAs) ties together funds spent with central market messages, providing a single reconciled view of all funds in and out of a binder, resulting in fewer reconciliation issues, reduced resource time, lower overall costs and a proven reconciliation process resulting in better controls.
Chris Palmer from Vitesse confirms “With FCP, your statement of record is in real-time, no longer dependent on Bordereaux submissions for visibility of spend which can often be several months after the actual claim payments.”
With this real time visibility comes clear indicators of in-flight issues - typically harder to spot in more traditional models - including discrepancies caused by duplicated cash payments, rejected payments or missed bordereau submissions which are a few examples of issues seen via the loss fund process and which FCP clearly identifies. The materiality of DA funds continue to grow at pace and the increasing priority of ensuring all funds are stress tested for Tier 1 banks, the need for a clear, audited position of funds held has never been greater for Lloyd’s carriers.
