Transcript Claims Handling Protocol - Marine Claims Conference

Hull Claims Protocol
2007 Update
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Hull Claims Protocol – IMCC 2006
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Authority of Claims Leader
Responsibilities of Claims Leader
Provision of claims information
Establishing and maintaining reserves for
claims and claims expenses
Agreeing settlements
Pursuing recoveries
Financials
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Issues
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Agreement to adopt
Leaders’ expertise, experience and resources
Integration with existing market practices /
systems
Impact of regulations
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The Next Step - Consultation
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France
Germany
Italy
London
Scandinavia
USA
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Areas canvassed
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General reaction to concept
Potential problems implementing Protocol
due to local regulations
Potential for irreconcilable conflict with local
claims handling procedures
Conflict with local laws
Comments on wording
Support for implementation
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France
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Leading Companies in favour of concept – “…a
good practical way to improve the international coinsurance claims processes which would benefit
assureds.”
Provisions requiring broker involvement in relation
to liaison with co-insurers should be included
Should be a separate agreement not in policy
No foreseeable problems with implementation
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Germany
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Positive reaction to Protocol
No conflict foreseen with local regulation or
laws but general practice is for followers to be
bound by Leader’s decisions
Timeframes for reporting may be idealistic
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Italy
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Generally positive reaction
Concerns re lack of information re followers
and role of brokers in communicating with
followers
Concerns re tight reporting timeframes
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London
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Supportive of concept but in current form not
workable in London Market context
Identified problems of compliance with London
Market claims schemes, FSA & Sarbanes-Oxley
requirements
Consider that greater burden placed on brokers
Need to define role of Leader in London context
Should include provisions relating to involvement of
Surveyors and Average Adjusters
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Scandinavia
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Norway & Sweden – Positive reaction, no
particular concerns re implementation
Denmark – Reasonably positive without being
enthusiastic, some concerns re prior approval
of EU Law Commission
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USA
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Mixed response
Concern - broker co-operation
Concern - moving broker responsibilities to
Leader
Concern - resources of Leaders
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Comments on wording
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Revise introduction to set out objectives along
lines of Lillehammer Protocol
Include provision for counter-security where
Leader issues 100% LOU to third parties
London Market – closely define role of
Leader
Other comments clause specific
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Clause 2(b)
All claims shall be notified to the Claims Leader by the Assured or their
Broker. The Claims Leader shall be responsible for:
(b) Ensuring that the Following Underwriters are advised of all claims
notified under the insurance within 10 days of notification to them.
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Clause 2(d)
All claims shall be notified to the Claims Leader by the Assured or their
Broker. The Claims Leader shall be responsible for:
(b) Ensuring that the Following Underwriters are provided with updated
information regarding the claim, including revised reserves for the claim
and claim expenses:
(i) within 30 days of the initial notification to the Following
Underwriters,
(ii) whenever there is a significant development, but
(iii) at least every six months.
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Clause 2(e)
All claims shall be notified to the Claims Leader by the Assured or their
Broker. The Claims Leader shall be responsible for:
(e) Agreeing interim and final claim settlements within the conditions of the
insurance and advising such settlements to the Following Underwriters.
However, in no event will the Claims Leader be responsible for the
settlement of any claim on behalf of the Following Underwriters.
Substitution: “recommending”
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Clause 2(f)
All claims shall be notified to the Claims Leader by the Assured or their
Broker. The Claims Leader shall be responsible for:
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(f) Negotiating and recommending compromised or commercial
settlements and submitting same for the consideration of the Following
Underwriters. However, for the avoidance of doubt, in no event shall any
agreement to compromise any claim be binding on Following
Underwriters.
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(f) Negotiating and recommending ex-gratia settlements and submitting
same for the consideration of the Following Underwriters. However, for
the avoidance of doubt, in no event shall any agreement to compromise
any claim be binding on Following Underwriters.
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Clause 4
The Claims Leader shall exercise discretion in the circulation of the reports
of surveyors or other experts. In particular, the Claims Leader shall be
under no obligation to provide reports of surveyors to Following
Underwriters unless the 100% gross claim is expected to exceed €500,000.
Or: €1,000,000 or €2,000,000?
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Hull Claims Protocol
2007 Update
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