From 1 July 2007, the placing and post placing processes applicable for all insurance contracts has changed, the main changes are that:
- all underwriting checks including Lloyd’s contract checks are performed by underwriters prior to entering into the contract.
- a complete copy of the slip can act as underwriters’ contractual document, with an option to produce a Lloyd’s policy signed by XIS, only if specifically requested (or as allowed under the guidance for a new Market Reform Contract).
- the current stage 2 checking process has ceased and contracts are no longer being automatically added to the Lloyd’s Unsigned Policy Report (LUPR); and
- XIS are supplying a new policy checking/production service, and query handling process (PSS), on those contracts requiring a Lloyd’s policy.
The implications for underwriters are:
- underwriters need to ensure that the slip is complete and accurate and that relevant checks have taken place pre-bind.
- any expert wordings input necessary should be provided pre-bind; and
- XIS no longer automatically provide a post placement slip and policy (stage 2) checking service. Underwriters may choose to outsource the checking task.
Should our slip review procedures have been revised?
The short answer is yes. The market bulletin Y4015 confirms the expected response, ie, to undertake a risk-based review and establish PBQA procedures which are appropriate to each business.
For example, options could include:
- asking for slips earlier to enable review
- using Lloyd’s QA and Crystal tools to check slips content, and
- greater use of model wordings
- using an outsourced slip checking service
For more detailed information on this change please see:
Frequently asked questions Lloyd’s market bulletinsLloyd's Market Association
