Members of the International Underwriting Association have begun a pilot project to test a new electronic claims system for the London Market. The scheme will allow companies to assess new technology designed to make the submission of claims information faster and more transparent.

Electronic Claims Files for the company market will be linked to a shared repository that has been developed by Xchanging, the market’s back-office service provider. Such files will be continually available to companies for their own review and record keeping. The need for brokers to present individual paper claims files to different underwriters will also be greatly reduced in time.

The project is a key part of the London Market's overall reform programme and a similar electronic claims initiative is also underway in the Lloyd's market. Since the late 1980s IUA members have used CLASS (Claims Loss Advice and Settlement System) to access many claims information electronically. The new repository scheme, however, aims to provide a much more complete electronic claims management system, including document storage, says the IUA.

A total of seven IUA companies are participating in the pilot together with the cooperation of four brokers. The scheme will last for three months and include fortnightly meetings for participants to discuss progress and report any problems.