Lloyd’s managing agents are being urged to migrate onto a new Faster Claims Payment (FCP) platform over the next six months, which pays claims in minutes in local currencies.

A new agreement with platform Vitesse will allow Delegated Claims Administrators for Lloyd’s binding authority business to make payments on request and draw on managing agent funds directly. The change removes the need for loss funds and associated cash calls for funding deficits.

Managing agents can now sign individual agreements with London Insurance Market Operations & Strategic Sourcing (LIMOSS) and begin transferring binding authority contracts to the Vitesse platform for claims payment.

London Market Authority Claims Director Janine Powell says FCP provides greater visibility and improved controls over claims funds and was a "vital initiative”.

“The FCP market service is a step change in how claims will be handled at Lloyd’s,” she said.

LIMOSS will contact managing agents to sign individual agreements to begin transferring binding authority contracts over to the FCP platform. It says FCP provides all participants with real-time visibility over claims payments, and lower account and transactions fees.

"LIMOSS is delighted to support the Lloyd’s and LMA claims strategy by contracting with Vitesse on behalf of managing agents and supporting managing agents in their use of FCP going forward,” LIMOSS MD Patrick Molineux said.

LIMOSS is a not-for-profit owned by the LMA, IUA and Lloyd’s, that sources and operates common Market Services for the London Insurance Market.

Vitesse co-founder and CEO Phil McGriskin says the FCP brings “huge capital efficiencies” and returns 80% of committed capital for re-investment into the businesses of the 50 plus Lloyd’s Managing Agents and 76 Syndicates it will work with.

“Now that the contract (with Vitesse) is signed, we encourage anyone who is not already onboard to start their journey to an FCP future,” Lloyd’s Market Transformation Director Bob James said.