Category: Lloyd's market · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-05
Xchanging Claims Services (XCS) was the central London market service for claims processing and, in delegated cases, claims handling on behalf of subscribing Lloyd’s syndicates and company market reinsurers. XCS was incorporated into Xchanging Ins-sure Services and now forms part of Velonetic (the consolidated Lloyd’s/IUA central market services entity).
Category: Lloyd’s market Also known as: Xchanging Claims Services, XCS, LMS Claims Related concepts: Lloyd’s Policy Signing Office, Lloyd’s of London, Bureau leader
The XCS function combined two related activities: claims processing (the operational mechanics of advising claims to the subscribing market and settling agreed claims through central settlement) and claims handling (in delegated cases, conducting the substantive negotiation of the claim on behalf of the following market, under the direction of the lead underwriter).
XCS is the principal mechanism by which the London market handles its very large volume of subscription-market claims efficiently. Without central claims processing, each subscribing carrier would need to settle separately with the broker.
Central claims processing is governed by the London market subscription agreement (typically the LMA General Underwriters Agreement, which provides for lead underwriter authority on certain decisions binding the following market). The FCA regulates conduct of business under SUP and ICOBS.
The broker submits the claim to the central bureau, which routes it to the lead underwriter for review. The lead agrees or declines the claim (subject to following market involvement on specified categories); XCS or its successor processes the agreed settlement through central settlement; each subscribing carrier’s share is debited from their bureau account.
For complex or material claims (typically those above £100,000 or involving disputed cover) the lead underwriter may handle the substantive negotiation in conjunction with claims counsel; XCS provides only the processing mechanics. For volume bordereau business (binders) XCS or specialist delegated claims handlers handle claims under formal delegated authority.
An illustrative example: a £400,000 property damage claim under a London market slip is notified to the lead Lloyd’s syndicate. The lead underwriter reviews, agrees the claim, and instructs XCS (Velonetic) to process the settlement. Each subscribing carrier’s share is debited from their bureau account and credited to the broker for onward payment to the insured. The total claim cycle from notification to settlement is typically 30–60 days.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
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