News...
Brokers given days
to get Katrina info
By Ralph Savage
Confusion over Lloyd’s exposure to Hurricane Katrina is being exacerbated by the fact records of binded authority business may have been lost. The claim comes as Lloyd’s brokers were given a tight deadline to identify coverholders in the area.
Lloyds’ broker Holman’s is hoping to capitalise on this confusion by offering its own software system to managing agents, which allows them to keep and access detailed records of all binders and coverholders.
Andrew Holman, chief executive at Holman’s, told Post Magazine: “In many cases in Louisiana, the ultimate policyholder has lost everything but so has the broker that issued the policy. No one can process claims – most binded authorities have a three month bordereaux report and, therefore, much of the information is three months in arrears. All they would know was the coverholder’s name, address, class of business and premium.”
Mr Holman explained the new system will be marketed to Lloyd’s managing agents and brokers, so they can access real-time policy details and records. “It would solve the situation completely,” he added.
Mr Holman said his company had no coverholders in Louisiana, although he said the situation for other Lloyd’s brokers with such business could be dire: “Lloyd’s wrote to all of its brokers to detail their coverholders in the affected area. They were initially given only four days to do it, although the corporation admitted they would find this difficult.”
Lloyd’s said it was unable to provide the number of coverholders who had responded to its letter but remarked that the response had been “very good.”
Post Magazine 22nd September 2005
