The LMA Claims Committee (LMACC) has sponsored and funded the Gemini development and implementation on behalf of the market to respond to the market’s legacy challenges associated with a lack of visibility and oversight of expert performance and spend, the poor data quality that was recorded as part of the claim’s management process, and the high cost associated with multiple expert fee management services.

We know that:

• the market asked for Gemini to be built
• the market has already paid for the build and annual run costs
• both the LMAOC & LMACC have ‘endorsed’ Gemini and want the Market to adopt it to enable managing agent and market cost savings
• Gemini will save between £3.2m and £5.4m per annum in fee transaction costs when fully adopted

This bulletin therefore sets out a recommendation that is endorsed by the LMACC and LMA Operations Committee (LMAOC) for all managing agents to sign-up (via the Market User Agreement with LIMOSS) to Gemini to facilitate both the equitable sharing of the Gemini transactional fee (£25) across all subscribers to a risk, and deliver a centralised solution to accurately validate and process expert spend.

Charging Model & Adoption

A pay as you go transaction charge of £25 (plus VAT) applies per bureau claim transaction for each expert invoice processed via the Gemini service and platform.

The LMACC has recently fully endorsed (supported by the LMAOC) extending the market practice and process of other central claim services to share the transactional charge associated with expert fee payment across subscribing (re)insurers. This therefore requires:

• each managing agent to fast track their MUA agreement to support the markets sharing of lower costs whether a managing agent has plans to actively use Gemini as a Leader and or integrate with their CMS, or not.

The outcomes achieved from this approach:

• Managing agents and market wide cost saving from Gemini transaction costs. Savings that benefit all managing agents via the cost share arrangement across subscribing (re)insurers of the policy / claim to which the expert appointment relates.
• Acceleration of adoption that captures granular and structured data that supports and responds to Lloyd’s MS9, and prepares managing agents. As for the transition and integration to FAL, whilst removing the dependency on multiple legacy and costly solutions.

Benefits

The Gemini cost benefit case, in addition to the ancillary tech and data benefits that are enabled following the delivery of the Gemini solution (as funded and supported by the LMACC and LMA Board) are as follows:

• the market spends approx. £1bn on experts per annum, via 118k transactions the market pays (via multiple providers) between £4.5m and £6.7m per annum, for fees to be processed
• the delivery of Gemini (managed by LIMOSS) will cost the market approx. £1.3m per annum in run and transactional processing costs and;
• saving the market between £3.2m (based on a 70% adoption rate) and £5.4m.

It should be noted that all managing agents are aligned to and signed up to the LIMOSS MUA model, which Gemini is now a part of. This enables a consistent contracting mechanism and process for managing agents and all LIMOSS managed services. The yearly licence charge for Gemini has also been incorporated into LIMOSS charging model and is therefore funded by both the LMA and LIMOSS via each managing agents’ contribution – there is no additional charge for the adoption and implementation of Gemini.

LIMOSS and the LMA will be engaging managing agents that have not received or returned the MUA to support and guide the adoption process.

Tim Bowling
Senior Executive, Claims