Check Less, Improve Compliance?
With the FSA’s deadline for contract certainty looming, Lloyd’s is putting a positive spin on its latest initiative to “streamline the way insurance contracts are checked, produced and issued.” The goal, of course, is to produce insurance documentation without any mistakes, and to issue that documentation to the customer before (or very soon after) inception.
The current (self) assessment of contract certainty amongst Lloyd’s Managing Agents is 80%. That sounds OK, except that it means 1 in 5 deals flowing through the Lloyd’s market is currently failing the contract certainty test.
The proposed solution? Simple, really. Check less.
It’s hard to argue that slashing the number of QA checks from 170 to around half that number won’t reduce the slip rejection rate. But whether this will improve the speed, quality and certainty of documentation is much less clear.