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Home / Insurance / Lloyd’s pays the Titanic loss in 30 days – can modern American airlines pay as fast? | Property Insurance Law Team Blog

Lloyd’s pays the Titanic loss in 30 days – can modern American airlines pay as fast? | Property Insurance Law Team Blog



I was in Cobh (formerly Queenstown), Ireland, yesterday. Cobh was the last destination for the Titanic before its fatal collision with an iceberg sent it to Davey Jones Locker. The picture above is next to where the third-class passengers would have had to board tender America, which took them to the Titanic which was moored further out in the harbor.

Lloyd’s paid the Titanic claim in 30 days. Lloyd’s has a fantastic website regarding the history of the Titanic’s issue guarantee and the payment of the claim. Note on the issue guarantee:

Broker Willis Faber & Co came to Lloyd’s on January 9, 1912 to insure the Titanic and its sister ship, the Olympic, on behalf of the White Star Line.

With the help of the fact that the vessels were generally advertised as “unsinkable”

;, the policy was taken out by all marine insurers at Lloyd’s and by most marine insurance companies in London.

Various insurers took some of the risk from £ 200 to £ 75,000, and on 11 January the note was ready; Olympic and Titanic were fully insured for £ 1 million each. It was the largest marine risk ever and accounted for 20% of the total capacity of £ 5 million on the market at the time. (The total insured sea losses for the whole of 1912 amounted to 6.75 million pounds).

The Prudential made a video about its fast payments regarding life insurance claims caused by the sinking of the Titanic:

Why can’t US real estate insurance companies pay total losses so quickly? The technology to do so is certainly much better now, but where is the will? Do US insurance companies have enough experienced and reliable claims settlers in the field who can perform the kind of claims service Lloyd’s did over 100 years ago?

I highlighted the problem of delaying claims in a post, Delayed payment of insurance claims after expected disasters is an epidemic:

The typical business break adjustment does not start in months. Insurance companies no longer have staff adjusters who have any training in determining the amount of coverage they sell with virtually all issued commercial insurances. Instead, the entire claims industry sends its customers’ interruption claims to third-party accounting firms that rarely go to the corporate loss website, but then ask for financial information months after a loss. Why do the insurance companies not allow these auditors to go to the business immediately, talk to the policyholders, their accountants, managers and auditors on site and then make a payment immediately? Can you imagine any other industry in the emergency response industry saying “hello, sorry this happened to you, thank you for telling us and we will fix your problem in six months”?

Full payment is important. Fast payment is just as important. Cheers to all the companies that fully pay the sum of a total loss of 30 days that Lloyd’s did! It should happen much more often.

Today’s thoughts

The deeper we get, the easier it is to sink into the sea of ​​rudeness.
—James Russell Lowell


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