France: BCR co-insurance scheme
From October 2014, Lloyd’s managing agents will need to make faster BCR payments to Lloyd’s office in France.
Lloyd’s membership of the French Insurers' Association (FFSA) allows Lloyd’s underwriters to use the clearing system known as the Bureau Central de Repartition (BCR). Underwriters are therefore able to participate in contracts written on a coinsurance basis placed through BCR where the lead insurer is located in France. These contracts are property and casualty insurance covers for the mid-sized market. The BCR, which is an optional scheme, can be used for open market and binding authority business. Accounting (premium and claims) and documentation procedures are handled by the BCR. Lloyd’s office in France administers Lloyd’s participation on behalf of interested underwriters.
From October 2014, financial transactions going through BCR will be automated and secured. Under these new accounting procedures, BCR will directly debit or credit the bank account of Lloyd’s office in France. These automated transactions will take place each month on a fixed working day on either the 24th or 25th of the month.
Therefore, in order to comply with this new BCR procedure, the Lloyd’s broker and French coverholder/service company must transfer the funds to the BCR bank account of Lloyd’s office in France within five working days of being notified that the payment is due. To be processed that month, funds must be transferred no later than the 22nd (or by the preceding working day). Please note that Lloyd’s office in France does not hold any funds to support the BCR charges and that failure to receive the monies in the allotted time may result in underwriters or Lloyd’s brokers being charged a late payment penalty either by BCR or by Lloyd’s office in France.
For further information, please contact Stephanie Le Ninivin in the Lloyd’s office in France.