Australian insurance brokers are voicing growing frustration with the way Lloyd’s syndicates often handle claims from London or, like some insurers, through third-party administrators (TPAs). The brokers say this is leading to sluggish turnaround times and eroding client trust. In the current competitive soft market conditions this is increasing pressure on brokers and adding to the already heavy strain on their customer service teams.
For brokers, claims advocacy is the point where customer service pressures hit hardest. As one senior claims leader explained, for clients, a claim isn’t just another file – it can be the single most pressing issue in their business. A warehouse destroyed by fire, a motor vehicle accident sidelining a fleet, or a cyber incident halting operations can become existential threats.
“Customers want outcomes quickly,” he said. “They don’t care about the insurer’s internal processes - they want to know when their car will be repaired, when coverage will be confirmed, and when payment will be made.”
The same broker said “the real issue” behind claims delays could be the level to which any insurer “culturally champions claims service excellence” rather than being dictated to by processes including referrals for authority and other red tape.
Another broker said that while he has had “fantastic claims” with Lloyd’s syndicates and TPAs, the overseas factor often adds “at least a business day” and considerably more for complex claims.
“Not all claims handlers are equal,” he said.
When insurers respond promptly, brokers say they can manage client expectations and guide them through the process. But when there are delays, especially on urgent matters like workplace fatalities, statutory liability claims, or cyber breaches, brokers are often forced to take pre-emptive steps – such as engaging lawyers or loss adjusters – before the insurer has even responded.
Some of the frustration stems from Lloyd’s syndicates where the claims authority is in London and leads to delays caused by the time-zone difference. These delays multiply quickly, say some brokers, when the claims are complex.
One broker said TPAs located in Australia can also be “notoriously slow” in acknowledging claims, making indemnity decisions, or issuing settlement payments.
“It’s not all, but for a decent proportion of accounts managed through TPAs, action can take weeks,” the broker said. “Sometimes it feels like claims just sit in a void.”
The result is a poor experience not just for customers but also for brokers, who are left chasing responses while under pressure themselves.
In contrast, insurers with strong local claims teams - such as Liberty Specialty Markets, Berkshire Hathaway, AXA, and Pacific Indemnity - were singled out as “standout performers.” These insurers provide immediate acknowledgments, allocate claims handlers quickly, and maintain open communication throughout the process.
Even with insurers that do perform, brokers stress that managing customer expectations is critical. Clients are rarely familiar with the complexities of the claims process, and delays with repairs, assessors, or trades after major weather events only add to the frustration.
“The better you prepare the client, the better the journey will be,” said the broker. “We try to avoid surprises – flagging upfront where exclusions or delays might arise. It doesn’t make the claim faster, but it makes the process more transparent.”
For brokers, the stakes are high. Poor claims service from Lloyd’s syndicates and TPAs doesn’t just damage insurer reputations - it reflects back on the broker. “Customers don’t always distinguish between us and the insurer,” the broker said. “If things stall, they’ll blame us.”
While outsourcing may be efficient for underwriters, it is leaving brokers and clients grappling with sluggish responses and uncertainty at the very moment when they need swift, decisive action.
That’s why some broking teams now track insurer performance and feed it back to their risk advisers. If a carrier consistently fails to deliver, brokers may stop recommending them – regardless of price.
Until syndicates and TPAs address the issue through better resourcing or empowering local claims teams, brokers will continue to bear the brunt of customer frustration. And as the broker in this interview made clear, the industry must remember that at its core, insurance is a service business: “Every step of the way, it’s customer service.”
How do you rate the claims service from Lloyd’s syndicates and TPAs compared to the service from insurers with local claims authority? Please tell us your experience below.
