Lloyd’s is making it easier for coverholders to do business with the Lloyd’s market by introducing a series of standards for information reporting.
Coverholders will typically report on risks, premiums and claims on monthly bordereaux to the Lloyd’s syndicates 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 Lloyd’s syndicate.
Lloyd’s vision
Lloyd’s vision is to make this flow of information consistent by working with market participants to agree reporting standards.
Standards state the minimum
The standards state the minimum information which must be provided when reporting. Some of the information is mandatory and always required. Other information is conditional and required only under certain conditions, for example, dependent on the location of the risk, the insured or the coverholder.
NEW VERSION OF THE STANDARDS
A new version of the standards, version 2, was launched in September 2011. This includes changes impacting US surplus and excess lines, UK employers’ liability risks, all aircraft, vehicles, ships and vessels and claims involving bodily injury to a US citizen.
Format
Lloyd’s has provided a recommended Claims Reporting Template and Premium Reporting Template and is working with ACORD on XML messaging standards.
Benefits
- The standards provide a clear and consistent statement of the information which coverholders need to provide to the Lloyd’s market
- Standardised information flows
- A structure around which systems and processes can be designed
- Freedom for market participants to choose their own systems
- Reduce the need for manual intervention and re-keying
- Enable the right information to be received in London to manage exposures and claims and to enable reporting to regulators and tax authorities.
New coverholders
The standards are mandatory for new coverholders. It is recommended that new coverholders work with their Lloyd’s brokers and syndicates to ensure that the information they submit meets the standards.
Existing coverholders
Existing coverholders are strongly encouraged to use the standards. It is recommended that existing coverholders compare their current submissions to what is being requested and work with their Lloyd’s brokers and underwriters to agree any changes required.
The user guide
The user guide provides details of the information which needs to be reported and the conditions under which it is required; together with examples of how coverholders may typically provide the information.
Lloyd’s claims standards apply to coverholders and Third Party Administrators (TPAs) with claims authority.
Lloyd’s claims standards include:
Header information
- All coverholders must provide details so that claims can be associated with the correct coverholder and binding authority agreement.
- Examples of the information needed: Coverholder name, TPA name, the agreement number or Unique Market Reference (UMR) for the binder.
Core risk information
- All coverholders must provide details of the risk that the claim is being raised against.
- Examples of the information needed: Risk inception and expiry dates, certificate reference and name of the insured.
Claims information
- All coverholders and TPAs must report key details of the claim.
- Examples include: Claims reference, location of loss, cause of loss and name of the claimant.
Medicare information
- Coverholders and TPAs managing claims which involve bodily injury to a US citizen must provide Medicare information.
- Examples include: Results of eligibility checks.
Claims transaction information
- All coverholders and TPAs must provide details of claims to be paid.
- Examples include: Amounts paid this month and previously paid for indemnities and fees.
Management information
- It is preferable that management information on claims is reported where appropriate.
- Examples include: Details of accident health plans and catastrophe names
Further details
Further information on the claims standards can be found in the Coverholder Reporting Standards User Guide.
Lloyd’s syndicates and brokers worked with ACORD to create the ACORD standard for US property exposure reporting, ACORD ER3001. This standard applies to coverholders writing US property risks.
The US property exposure standards include:
Header information
- All coverholders must provide details so that risks and premiums can be associated with the correct coverholder and binding authority agreement.
- Examples of the information needed: Coverholder name, the agreement number or Unique Market Reference (UMR) for the binder.
Core risk information
- The standard asks for a list of risks in force at the time the report is produced.
- All coverholders must provide key details of the risks they have written.
- Examples of the information needed: Risk inception and expiry dates, certificate reference and name of the insured.
Property exposure information
- The standards asks for details of the location of the risk, insured values, perils, type of occupancy and construction.
- Coverholders will not necessarily be expected to include all the information listed in the standard; they need to agree what they will provide with their broker and Lloyd’s syndicates.
- Examples of the information needed: does the policy cover earthquakes, windstorm, floods, fire, terrorism, year built, type of occupancy.
Further details
