Reporting standards

An introduction into the information that is required from the coverholder and the standards Lloyd’s has developed for reporting that information. Lloyd’s coverholder reporting standards are explained, together with their benefits and how they should be implemented.

Coverholders are required to submit information about risks and premiums; and about the claims that they handle; to Lloyd’s managing agents with whom they have a binding authority contract.

The binding authority contract is the agreement which gives the coverholder authority to write business on behalf of the managing agent. This will include details of reporting requirements.
  • What information is required from coverholders?

    The following information is typically required:

    • Details of written risks and premiums
    • Details of paid premium transactions
    • Details of any claims managed by the coverholder  

    The following are examples of the sort of information needed: 

    • Policy details – for example: inception date, expiry date, the name of the insured
    • Risk information – for example, the class of business and tax & regulatory information
    • Details of the premium that is being paid to the managing agent – for example a monthly instalment of premium, additional premium for a change to the policy, return of premium because of a cancellation
    • Loss details – for example, the location, cause of loss, the date of the loss
    • Status of the claim – for example is the claim paid or outstanding? Has it been referred to the managing agent?


    Note - the coverholder need only report on the claims they have managed.

    Full details of the information needed are given in the coverholder reporting standards user guide.

  • Why is the information needed?

    Information is needed from the coverholder to ensure that:

    • The right money can be moved between the different parties
    • Lloyd’s and the managing agent can meet their tax and regulatory reporting responsibilities
    • Premiums can be monitored
    • Claims can be managed
    • Accumulated risk exposures can be managed, for example, if there is an earthquake or flood
  • How should the coverholder submit the information?

    The coverholder may submit the information in a variety of ways:

    • By sending a monthly spreadsheet known as bordereau to the Lloyd’s broker. Lloyd’s has produced recommended spreadsheet templates for reporting premiums and claims, but coverholders are not obliged to use these.
    • Using a system that has been provided by the Lloyd’s broker or managing agent.
    • By sending an XML message which includes all the information needed to the Lloyd’s broker.

     

    The coverholder should discuss the method they wish to use with the Lloyd’s broker and managing agent.

    Please see the coverholder reporting standards user guide, pages 10-16, for examples of how information may be provided.

  • Does the coverholder have any additional requirements to report to Lloyd's local offices?
      Reporting requirements 
    Local Lloyd's offices                       In some territories, there is a requirement for the coverholder to report information to the local Lloyd’s office. This information is usually required to enable Lloyd’s to meet its local regulatory responsibilities. Such reporting may include information on risks and claims. Coverholders may also be required to provide certificates or other documents. It is expected that these requirements would be discussed and agreed by the coverholder with the local Lloyd’s office.
    Canada In Canada Lloyd’s provides a system called Lineage which covers Lloyd’s local office information requirements (see chapter 9 – Lloyd’s coverholder systems).
    Local tax authorities In some jurisdictions there is a requirement for the local coverholder to report and pay taxes direct to authorities. Coverholders are expected to work with their local tax authorities, agree any such reporting and make all tax payments due on time.
  • What are Lloyd's coverholder reporting standards?

    In order to make the flow of risk, premium and claim information consistent between coverholders and the Lloyd’s market; a series of standards has been introduced for reporting core risk information, paid premium transactions, claims and US property risk exposures.

    • Premium reporting standards

    The premium reporting standards include core information about the risk, information about paid premium transactions and class specific underwriting information. 

    • Claims reporting standards

    The claim reporting standards include information about the loss and status of the claim.

    Lloyd’s premium and claims reporting standards include information which is mandatory and must be provided in all circumstances, and other information which is conditional, dependent on the circumstances of the risk; for example the location of the risk or the location of the insured might be a consideration.

    • US property risks exposure reporting (ACORD ER3001)

    o The standard includes the information required by managing agents to enable them to manage US property exposures. 
    o The standard asks the coverholder to report details of risks in force at the time the report is produced. The standard is very comprehensive and coverholders will not necessarily be expected to include all the information listed. The coverholder needs to agree the information they will provide with their Lloyd’s broker and managing agent. 
    o The standard was originally designed for US property business but is also being used in Canada and can be used as a basis for reporting on property risks elsewhere in the world.

  • New versions of the standards

    Lloyd’s will periodically release new versions of the standards to include tax and regulatory changes. The most current version of the standards can be found here:-

    http://www.lloyds.com/coverholderreportingstandards
     

  • What are the benefits of Lloyd's coverholder reporting standards?
    • A clear statement of the information coverholders need to provide for the whole of the Lloyd’s market.
    • A consistent list of requirements around which processes and systems can be designed.
    • Standard information flows.
    • Freedom to use your own choice of systems and technologies.
  • Next steps

    Lloyd’s coverholder reporting standards apply to all territories and classes of business and have been mandatory from 1 April 2011 for all new coverholders approved by Lloyd’s. It is recommended that new coverholders work with their Lloyd’s brokers and managing agents to ensure that the information they submit meets the standards.

    Existing coverholders and TPA’s are strongly encouraged to use the standards. It is recommended that existing coverholders and TPA’s compare the information they currently submit to what is requested by the standards and work with their Lloyd’s brokers and managing agents to agree a plan to meet the standards.

Download

Coverholder Toolkit | Reporting Standards  pdf file
Chapter 8: Lloyd's coverholder reporting standards

This chapter gives an introduction into the information that is required from the coverholder and the standards Lloyd’s has developed for reporting...

Related Links

Coverholder Reporting Standards Webpages

An Introduction to Coverholder Reporting Standards 

Coverholder Reporting Standards User Guide 

Lloyd's Premium Reporting Template V2 

Lloyd’s Claims Reporting Template V2 

ELTO Template

ACORD ER3001 - Binding Authority Implementation Guide

ACORD Website

ELTO Website