A market bulletin was published by Lloyd’s on 30 May 2016 in respect of its revised code for managing agents on UK personal lines claims and complaints handling (the Revised Code).
In line with changes to FCA rules on complaints handling, the Revised Code will come into effect on 30 June 2016. Prior to this date, managing agents should adhere to the code issued in October 2015. The key amendments in the Revised Code concern the following:
- An extension of the process for informal resolution of complaints to close of business of the third business day. Managing agents are requested to include model wording (found in Appendix 2 to the Revised Code) in all “summary resolution communications”.
- Decisions by the complaints team at Lloyd’s after a “stage two” review valued at up to £500 may be binding.
- Standards for the assessment of compliance with the Revised Code will be set by Lloyd’s and any failure to meet these may result in enforcement action by Lloyd’s.
- References to the LMA’s recently published two model consumer and commercial complaints wordings for inclusion in insurance contractual documentation.
- Information relating to the key points to be aware concerning the setting up of EU online dispute resolution platforms.
In addition, reference is made to amended complaints reporting rules to be introduced by the FCA. As a result, managing agents will be required to supply “contextualisation” data in relation to the number of policies in force upon conclusion of the reporting period. These revised rules will be effective for reporting periods beginning on 30 June 2016. However, prior to the end of June, the complaints team at Lloyd’s will be providing managing agents with a reporting questionnaire to be completed, as part of a “dry run”, in order to ensure that managing agents are able to meet the new requirements.