1 / 18

Hull Claims Protocol

Hull Claims Protocol. 2007 Update. Hull Claims Protocol – IMCC 2006. 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. ?.

coby
Download Presentation

Hull Claims Protocol

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hull Claims Protocol 2007 Update

  2. Hull Claims Protocol – IMCC 2006 • 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 ?

  3. Issues • Agreement to adopt • Leaders’ expertise, experience and resources • Integration with existing market practices / systems • Impact of regulations

  4. The Next Step - Consultation • France • Germany • Italy • London • Scandinavia • USA

  5. Areas canvassed • 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

  6. France • Leading Companies in favour of concept – “…a good practical way to improve the international co-insurance 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 ?

  7. Germany • 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

  8. Italy • Generally positive reaction • Concerns re lack of information re followers and role of brokers in communicating with followers • Concerns re tight reporting timeframes

  9. London • 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

  10. Scandinavia • Norway & Sweden – Positive reaction, no particular concerns re implementation • Denmark – Reasonably positive without being enthusiastic, some concerns re prior approval of EU Law Commission

  11. USA • Mixed response • Concern - broker co-operation • Concern - moving broker responsibilities to Leader • Concern - resources of Leaders

  12. Comments on wording • 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 ?

  13. 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. Clause 2(b) ?

  14. 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. Clause 2(d) ?

  15. 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” Clause 2(e) ?

  16. All claims shall be notified to the Claims Leader by the Assured or their Broker. The Claims Leader shall be responsible for: DELETE? (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. OR AMEND? (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. Clause 2(f) ?

  17. 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? Clause 4 ?

  18. Hull Claims Protocol 2007 Update

More Related