Process Change for Coverholder Business in France and Monaco

This communication is to notify the Lloyd’s Market of an upcoming change to the reporting process relating to Lloyd’s Insurance Company (LIC) for: 

  • Lloyd’s France coverholder business in France; and 
  • Lloyd’s Monaco coverholder business in Monaco.

This change does not affect any other types of business, including coverholder business in France where the coverholder is not French and coverholder business in other territories written using a French coverholder. Please refer to the territory manuals on Crystal+ for information on the administration of premium taxes in these cases.

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Currently, French and Monegasque coverholders with an LIC binding authority report IPT and any applicable parafiscal charges to the French and Monegasque tax authorities under their own domestic IPT registrations. This is consistent with the approach communicated by Lloyd’s Tax Department to date; however, it is necessary for this to change.

With effect from 1 January 2026, it will become a requirement for these coverholders to report French and Monegasque premium taxes to Lloyd’s Tax Department for reporting under the LIC IPT registration. They must no longer carry out their French or Monegasque IPT reporting using their own IPT registrations. This change follows recent developments at LIC and is aimed at ensuring a consistent and compliant approach across all business written by LIC in France and Monaco.

This change will come into effect for transactions carried out from 1 January 2026 with French or Monegasque premium taxes applied, i.e. premiums received which are included in January bordereau submissions onwards. This includes additional and return premiums. In practice, this means that IPT and parafiscal charge values are required to be included in every bordereau submitted to Velonetic starting from the January 2026 bordereau. It will also be necessary for these values to be presented in box 17 of the LPAN where appropriate.

Velonetic has received updated instructions on the processing of these policies and will query any bordereau with missing IPT or parafiscal charges, potentially leading to delays in premium processing and payment. Lloyd’s Crystal+ has also been updated to reflect this change in process.

If you have any questions or require any further information about this transition, please contact the Lloyd’s Tax Department.

taxdept@lloyds.com

FAQs

 

This change comes into effect from 1 January 2026. For monthly bordereaux, this means that transactions carried out from 1 January 2026 are subject to the new process. For quarterly bordereaux, the change applies from the first quarterly bordereau starting from 1 January 2026.

Please see below examples which illustrate this.
  • Bordereau with a quarterly period from December 2025 to February 2026: reported by coverholders directly pursuant to the existing process.
  • Bordereau with a quarterly period from January 2026 to March 2026: premium taxes presented in the bordereau to allow for central reporting by Lloyd’s Tax Department.

Bordereaux should split out the different taxes so that the taxes and rates being applied are clear. There are numerous taxes that can apply in France, notably on property and fire risks. Ensuring that the tax treatment applied is clear to Velonetic will help to avoid queries which lead to delays in processing. In particular, the use of aggregate rates calculated from different risks and taxes are likely to be queried.

Corrections of previous signings should be processed as corrections of the original bordereau to which they relate. This is instead of including a return premium and additional premium in a new bordereau. As such, these corrections do not require IPT and parafiscal charges to be included on the bordereau and should be dealt with by the coverholder.