Conflict of Interest
have searched numerous sites / documents but cannot find any definitive answer to the following scenario. Conflict of Interest – We have recently presented a New Claim Advice via ECF in respect of a market loss. The risk is placed across Lloyd’s / ILU & Lirma markets. The Lloyd’s leader has enquired what we had done to ensure that none of the Claims Adjusters/Underwriters has any conflict of interest in viewing/actioning the Class/ECF transaction? Is this really something that the Broker has to ensure? Shouldn’t this be the responsibility of the Adjuster/Syndicate/Company?
The basic advice/notification from the client, which is loaded to ECF, should have enough narrative information on the Claims Summary screen to enable adjusters to determine whether they have a conflict of interest, as per the SP&P. We believe the duty is on each insurer to manage its own internal conflict/s. However, if the broker is aware that there are potential conflicts in respect of a claim, case or event then the broker should release a CLASS transaction with basic claim information and any documentation in the public domain. Then, in the narrative section, the broker should ask the lead to mark all syndicates agreement parties to this one transaction. This would then highlight the UCR to all participating
Syndicates/Companies and ensure that they review the claim and disclose any conflicts they may have using the conflict button on ECF. The reason for this approach is that most non agreement party syndicates do not review ECF entries when they have no role to play in the agreement process. Please visit the SP&P for more information and also the ‘Technical’ section of this website where a conflict of interest change request (CR0079) within CAS gives more detail on the workings of conflicts..