Lloyd’s has announced an updated version of the Coverholder Reporting Standards is to be implemented, effective from 26th September 2013. David Coupe summarises the main changes.
Lloyd’s uses information on both claims and premium to ensure the correct flow of money between coverholders, brokers and Lloyd’s syndicates and to deal with the FCA and tax authorities. To do this, Lloyd’s relies on coverholders supplying it with information on premium transactions, taxes, risks and claims.
The Coverholder Reporting Standards, which are designed to make the process of reporting to Lloyd’s clearer, have therefore been amended to account for the fact that different or additional information is now required from coverholders.
The standards are mandatory for all new coverholders approved since April 2011. The changes will affect coverholders, brokers, managing agents and service providers.
The changes are effective as of 26th September 2013.
There are no changes to the US Property Exposure Reporting Standards, the ELTO Reporting Standards or to the Claims Reporting Standards and many of the changes are simply by way of clarification or updating existing references.
The main subject of the changes is the Premium Reporting Standards. There are changes to the conditions under which information needs to be supplied. These are as follows:
- Total Sum insured amount and currency
- Employee Compensation business in Hong Kong
- GAREAT 1 in France
- Business in Iceland for the calculation of tax charges applicable to property and fire risks.
- Insured full address and postcode details, and full address details for location of the risk
- Portugal, to calculate fire brigade charges
- Kentucky, for municipal tax calculations and for reporting to the Australian reinsurance pool corporation
- New or renewal
- Liability business in Australia for the National Claims and Policy database
- Iceland, to calculate stamp duty
- NAIC Code
- New Jersey Surplus Lines Association number
- Local offices
- Clarification has been given regarding reporting to Lloyd’s Australia
- Coverholders who write personal accident and/or life policies where there is a beneficiary to the contract and the risk is located in Portugal must now provide Lloyd’s Iberia with a Registry of Life and Accident Policies
- Coverholders who write PI insurance for receivers/solvency practitioners in Spain are required to provide Lloyd’s Iberia with Registry of PI insurance for receivers and insolvency practitioners
- Clarification has been given to the requirements for reporting to Lloyd’s US Virgin Islands
- New model binder wordings
Schedule 1 The definition for Sum insured is now the highest amount that the Insurer can be obliged to pay out before taking into account possible original deductible of the policyholder
Schedule 2 In addition to previous requirements, information on Sum Insured must now be reported in the following additional territories, for the following classes of business:
Schedule 3 This field is now also required for:
Schedule 4 This field is now also required for:
Schedule 5 The NAIC Code field is required for US reinsurance business only
Schedule 6 The number must be provided only when giving details of US surplus lines risks placed with New Jersey surplus lines brokers
Schedule 7 In addition to existing local office reporting requirements:
Schedule 8 An introduction has been provided to the requirements of the new model binder wording with respect to coverholder reporting
Schedule 9 Can now be used to meet the requirements of claims and premium reporting standards
For further details, please refer to Lloyd’s Market Bulletin Y4721 (26 September 2013).