A new claims capability framework for London market claims professionals has been launched to address a growing shortage of experienced talent. The resource was developed jointly by the Lloyd's Market Association (LMA) and International Underwriting Association (IUA), and covers the first two years of a claims professional's career in the market.
The scale of the problem has sharpened in recent years. New entrants with under three years of experience now make up 52% of junior claims roles at Lloyd's, up from 37% in 2023. Over the same period, professionals with 15 or more years of experience have fallen from 37% to 31% of the claims workforce.
Talent attraction and retention has moved from seventh to first among UK insurers' top business concerns in the past year. Claims management and adjusting were identified as the function facing the most acute shortages. Some 48% of UK insurers reported difficulty finding qualified candidates.
The framework was co-created by 37 professionals from 25 market firms. Contributors came from carriers including Brit, Beazley, Munich Re, Hiscox, Marsh, AXA XL, and Swiss Re. It covers six capability areas: understanding the market and your role, core claims knowledge, claims handling from notification to settlement, claims governance and compliance, claims operations, and personal and interpersonal skills.
Each area is built around capability statements at two progression levels: Level 1 covers foundational skills and Level 2 builds towards greater autonomy. Resources follow the 70/20/10 model, weighted towards on-the-job experience, and supplemented by learning from others and structured courses.
The framework also addresses AI literacy. New entrants are expected to understand their firm's AI policy and identify which claims tasks are suited to AI tools rather than human judgment.
Janine Powell, claims director at the LMA, said the market cannot invest in attracting new talent without a parallel commitment to developing it. "The Claims Capability Framework provides a clear and consistent pathway of skills, technical knowledge and learning experiences that new entrants should expect to develop during their first two years in the market," Powell said. The framework, she added, had been created by the market for the market.
Joe Shaw, director of claims at the IUA, said the market faces a specific challenge in giving new entrants the development needed for successful careers. "The Claims Capability Framework seeks to do this by laying out a clear pathway for achievement," Shaw said. It would, he said, give practitioners the skills and professional network to support their long-term development.
The framework is designed to be flexible so that firms can integrate it into their existing learning and development programmes. The LMA has also published an implementation guide and supporting FAQs alongside it.
Claims judgment in complex, high-value, and disputed cases is built over years of experience and cannot be replicated quickly. A market that brings in large numbers of new entrants without structured development risks trading short-term capacity for long-term capability. The framework represents a cross-market attempt to close that gap before it becomes a structural problem for the London claims function.
