Going the Extra Mile

Going the Extra Mile

Claims Managers have had to go the extra mile this year – be that to combat rampant claims inflation, the arrival of yet more regulations to comply with, or as in the picture above, providing aid to those in need in Ukraine. SX3 have been right there with them, and we have seen some really positive outcomes.


As ever, we start with a high-level view of the trend we have seen through our claims performance reviews across Motor, Casualty and Property claims operations. From the performance reviews we have carried out in 2023 so far, overall, we have seen an increase in performance levels: 

  Headline Scores – Claims Handling Performance Audits (whole market / all classes)  Leakage Rates 

(closed files only) 

  Worst  Average  Best   
2022  85.50%  92.71%  98.69%  3.06% 
2023  86.68%  94.17%  98.23%  1.64% 


As we predicted last year, leakage rates in 2023 have reduced (after increasing in 2022). One outlier this year has been claims handling performance around reserving, which dropped from 86.86% in 2022 to 85.91% in 2023. 


Pressure on bottom line is driving claims operations to review every aspect of claims processing to identify opportunities for improved effectiveness and efficiency.  We have supported many clients this year with just that.  

Commonly, the client will perform much of this work in house, comparing their average cost per claim data to a benchmarking service from the likes of Finalta or WTW.  We can then work with clients to get under the skin of that data. 

We also help to identify why existing practices result in the current level of performance, then providing an outside perspective as to how those practices compare with the rest of the market.  

Claims Consultancy – Working with a High Performing Client 


Consumer Duty came into full effect on 31st July 23 and set high expectations for the standard of care firms give to consumers in retail financial markets. Claims Management has had to look at every aspect of the customer claims journey, and the performance of everyone who forms part of that journey to ensure we are fully compliance with these enhanced standards.  

SX3 Associate James Tye provided a clear and concise outline of the basic principles and effects on claims handling: 


Our audit and review processes have been enhanced to include measures on Consumer Duty compliance and performance.  We will have more to report on that in the coming months as the changes in claims processes bed in. 


Having been accepted by Lloyd’s as an approved audit service provider, we have already conducted our first coordinated audits. These are a great concept by Lloyds. When we audit a TPA for operational/governance performance and control, we are often covering similar ground to that for other clients. Lloyd’s gather their member’s audit requirements and create a coordinated audit where possible, where one audit firm reviews the same TPA for a number of clients in one process. Of course, there will be additional aspects that need reviewing and reporting separately  for each client – as is the case when looking at their files – but the process is less onerous for the TPA and cheaper for the clients as it avoids duplication of effort.  

There’s no reason a similar approach couldn’t be taken outside of Lloyds. Given SX3 audit most of the UK claims handling TPAs, we would certainly encourage non-Lloyd’s insurers to get in touch with us to explore how we could deliver similar efficiencies to them.  


It has been quite a year on the ESG front. In our newsletter last year, we highlighted John Green’s fundraising efforts to help the people in Ukraine. This year, we were actually part of the team driving through Europe to deliver 5 ambulances to Ukraine loaded with aid for an orphanage and their front line.  

Such a worthwhile journey supporting an orphanage and aid workers alike. Here’s a lovely description of how the mission went and short video made by another member of the crew – Nick Hilton of Markerstudy – NICK’S UKRAINE REPORT 

We also continued our usual support of the excellent work done by Insurance United Against Dementia   


Work-Life balance remains one of the most important parts of the way we operate as a team.  Morgan O’Connor is a great example of an SX3 Associate living that dream: 


If you, or you know someone who is looking for a change, we are always interested in talented claims professionals to join our team, just get in touch. 


That going the extra mile with our clients has taken us deep into some of their claims operations, and expanded the range of business classes our experts cover, leading to growth and wider capability:

  • Service – This month, SX3 celebrated completing its 9th year of trading, and an unprecedent year of growth for the business. With over 60% growth in a single year, our team’s key priority has been ensuring the continuing quality of the service that our clients rightfully expect. We would like to thank all our clients for their support and understanding this year.  
  • Increased Capability – Part of that growth has been achieved through an expansion of capability within our consultancy team – ranging from reviews on Financial Crime, Marine, Aviation, Litigation Funding, Latent Defect, Financial Lines, as well as our usual Property, Casualty and Motor business classes. 
  • ISO accreditations – As part of our internal investment, SX3 has now achieved the ISO 9001 and ISO27001 accreditation for our processes and information security. 
  • Increased Geographical reach – We continue to support clients who are regulated overseas, such as insurers in Gibraltar, Malta, Bermuda and the Isle of Man, as well as providing training and insights to the regulator teams themselves. 

This next year will be our tenth year in business, that’s some milestone to go for – bring it on!

Seasonal best wishes to you all. See you in 2024.