Lloyd's can now confirm that Lloyd's Brussels will be able to write proportional treaty reinsurance from 1 March 2019, subject to a specific set of technical conditions being met.
Lloyd’s has previously confirmed that Lloyd’s Brussels will be able to write and process:
- facultative reinsurance and non-proportional excess of loss treaty reinsurance from 1/1/2019 across all markets in the EEA; and
- all treaty reinsurance, including proportional treaty business, from 1/1/20.
Lloyd’s also announced that it was investigating a bespoke solution to enable Lloyd’s Brussels to process proportional treaty reinsurance business in 2019 (full announcement here).
We can now confirm that the company will be able to write proportional treaty reinsurance from 1 March 2019, subject to a specific set of technical conditions being met. This solution will only be available for managing agents processing treaty in a similar way to delegated authority and which are able to meet the technical requirements summarised below.
Scope: The solution can only be used for EEA risks incepting post 1 March 2019. It will support proportional treaty, but also non-proportional excess of loss treaty and facultative reinsurance.
Set-up: Managing agents will be required to use an authorised coverholder (or service company) able to perform all proportional treaty specific processing, such as net settlements. The coverholder / service company will enter into a Coverholder Appointment Agreement (CAA) with Lloyd’s Brussels and will also manage their CAA submission to BAR and DXC.
Bordereaux Reporting: The coverholder / service company will produce monthly bordereaux for risk, premium and claims, compliant with the Lloyd’s Coverholder Reporting Standards v5.1 and manage submission to DASATs.
Premium Settlement: The coverholder / service company will submit their premium bordereaux to DXC for settlement.
Claims Settlement: The coverholder / service company will submit their claims bordereaux to DXC via ECF. All claims payments should be made via Central Settlement; non-cash movements will not be permitted. Given the short timescales, managing agents wishing to use this solution should register their interest by 14 December 2018, particularly if they are looking to start on 1 March 2019.
For any questions and further details on these requirements, please contact firstname.lastname@example.org.