When coverage is bound with Underwriters at Lloyds, London, several syndicates share a percentage of the total risk. The syndicates which bear the largest share of the risk are called the “leads” or “co-leads” depending on how many syndicates share a particular portion of any given risk.
Quaker Special Risk has delegated authority for Lloyds’ first party claims up to a specific monetary amount. When the loss reserve falls within the limit of our delegated authority, we handle and facilitate the claims process internally—including the hiring of an independent adjuster from a panel of adjusters pre-approved by Lloyds— through to settlement. When the reserve on a claim exceeds the amount of our delegated authority or there is a question as to the availability of coverage for a loss, the claim must be referred to Underwriters for review and approval of all actions.
When a claim payment or denial of coverage requires approval from Underwriters, our London broker must take each piece of correspondence, information, etc. to each lead syndicate for approval. Lloyds still operates in the traditional manner of a broker speaking face-to-face with the carrier. In certain instances, it can take several days for a London broker to see all of the co-leads. This can sometimes lead to minor delays in processing claims, issuing payments, etc. Once we receive instruction from Underwriters, we then relay that information to the independent adjuster for prompt action.