Raising the Bar: How Lloyd’s New Hurdle Principle Impacts Lloyd’s Claims

Effective 1 January 2026, the Lloyd’s claims management principle will be elevated to a “hurdle principle”, which represents a majorshift for Lloyd’s claims handling. This change will place the delivery of high-quality claims services among the key fundamental responsibilities of managing agents.

According to Katie Lamb, General Counsel at Gallagher Bassett, the new claims hurdle highlights the need for strong claims governance and oversight:

“Syndicate ratings will be directly influenced by claims handling performance. Failure to meet expectations may lead to a range of consequences, including restrictions on underwriting and increased regulatory oversight. However, high performers can expect to see their maturity ratings and market reputation strengthened.”

“Managing agents must ensure their practices meet regulatory standards and deliver prompt and fair service to customers,” said Lamb.

Charlotte Harrison-May, Gallagher Bassett’s Head of Carrier and Market Relationships, has always viewed claims performance as a core market differentiator and welcomes the change:

“The industry now recognises claims excellence as an important attribute, equal strategically with underwriting and governance. Though managing agents may find the short-term challenging, adapting to an elevated standard and optimising your claims journey is ultimately going to build trust in your supply chain and reinforce your competitiveness.”

“Looking at the bigger picture, a renewed focus on claims performance could be the key point of difference for the Lloyd’s market,” added Harrison-May.

With the deadline looming, how managing agents choose to meet requirements, and whether they delegate claims operations to a TPA, will define their ability to grow within the Lloyd’s ecosystem. Harrison-May notes:

“For managing agents in need of the resources to meet the new Lloyd’s maturity benchmarks, Gallagher Bassett offers comprehensive claims consultancy solutions to assist with in-house resource, capability and advisory challenges.”

The implementation of the claims hurdle principle is an additional pressure added to the modern insurer’s growing list of concerns. Charlotte Harrison-May urges those impacted to not lose sight of the true value of exceptional claims service: positive outcomes.

“Lloyd’s principles focus on outcomes, so managing agents need to demonstrate that they’re meeting benchmarks and are constantly looking for ways to improve their service,” she emphasised. “That’s where we can help.”

“Gallagher Bassett is a proven provider with tailored service, data-driven insights and operational resilience. We have recently expanded our capabilities in new markets, like marine, and are well positioned to elevate our clients’ claims functions so that they’re not only meeting, but going above expectations.”

Image provided by Gallagher Basset

Alicia Ward