Analysts at Gallagher Bassett have highlighted the shift to the “barrier principle” in Lloyd’s claims management, which places the delivery of high-quality claims services among the key fundamental responsibilities of managing agents, making it a strategic priority alongside underwriting and governance.
Elevating claims management to a “barrier principle” means claims performance is no longer just an operational metric; it is now a “pass/fail” gatekeeper for the entire business.
Katie Lamb, general counsel at Gallagher Bassett, said the promotion highlights the need for strong claims governance and oversight.
The new framework comes into effect on 1 January 2026, meaning syndicate ratings will now be directly impacted by claims handling performance.
“Failure to meet expectations can result in a range of consequences, including underwriting restrictions and increased regulation. However, high-performing businesses can expect to see their maturity ratings and market reputations strengthened,” Lamb noted.
It added: “Managing agents must ensure their practices comply with regulatory standards and provide prompt and fair service to customers.”
Charlotte Harrison-May, director of carrier and market relations at Gallagher Bassett, welcomed the change and cited claims performance as a core market differentiator.
Harrison May said: “The industry now recognizes claims excellence as an important attribute, as strategically important as underwriting and governance.”
She noted that while the short-term transition may be challenging, optimizing the claims process will ultimately build trust in the supply chain and enhance competitiveness.
“Looking at the bigger picture, a renewed focus on claims performance could be a key point of differentiation in the Lloyd’s market,” Harrison-May added.
As implementation deadlines approach, management agents face a critical decision: whether to handle operations in-house or delegate to a third-party administrator (TPA) to meet new maturity benchmarks.
Harrison-May noted: “For managing agents who need resources to meet the new Lloyd’s maturity benchmarks, Gallagher Bassett offers a comprehensive claims advisory solution to assist with internal resource, capability and advisory challenges.”
The implementation of the claims threshold principle adds to growing concerns among insurers. Charlotte Harrison-May urged those affected not to lose sight of the true value of excellent claims services: positive outcomes.
“Lloyd’s principles focus on results, so managing agents need to demonstrate that they meet benchmarks and continually look for ways to improve services,” she stressed. “That’s where we can help.”