The latest addendum to the Brexit toolkit has recently been issued by Lloyd’s
The Outsourcing Agreement documents are now out with Managing Agents for review and signing. The Agreement the new requirements for MAs writing EU business, which includes formalising the arrangements for business to be written by Lloyd’s Brussels, under delegated authority (for both claims and underwriting) to Lloyd’s syndicates.
Lloyd’s continues to work with representatives from the market to develop the Claims Guidelines which will sit alongside the Outsourcing Agreement.
Managing Agents’ Brexit Claims Forum: Driven by a number of common concerns and areas of uncertainty over the impact of Brexit on claims, representatives from 7 Managing Agents have set up a Brexit forum. Lloyd's and the LMA have also been invited to take part.
The main aim of the group is to: "seek an alignment of understanding of the issues and impacts of the LBS solutions, or gain clarity from Lloyd's if required"; and "develop solutions for the issues and impacts identified". The group is addressing concerns on behalf of all Lloyd's MAs, and will seek approval from the LMACC and the Claims & Operations Executive Group via the LMA for any outputs.
Most recently, the group has provided Lloyd's with a list of issues that they feel must be addressed in greater detail in the Guidelines.
The group has also outlined a number of outstanding concerns which it would like to see addressed by Lloyd's, these include: complaints, brand and relationship management, and the potential impact for the customer experience. Lloyd’s is in discussions with the MA claims forum and LMACC to work out how and where best to address these issues.
- MAs bind on behalf of LIC
- business incepting on 01.01.19 or after have to be on an LIC Binder
- binder wordings, clauses and frameworks will be circulated to assist MAs with updates that are required within TPA and coverholder agreements or contracts.
Service Companies – non-cash entries that are typical under the service company model will not be permitted and will need to operate under a traditional delegated coverholder model. Use of Lloyd’s Direct Reporting is being reviewed.
DA SATS (and the delivery of the Charles Taylor Tide platform) will be an integral part of the Brexit operating model being used as the vehicle to accept bordereaux/block data, supplying that bordereau / block data to LBS and supporting MA’s within the Brexit Operating Model.
There remain some data gaps in reporting from both TPAs and Coverholders, gaps that could present a risk to LBS. The data gaps have been identified by the Brexit team, communications and engagement will follows with MAs, Coverholders and TPAs.
Expert usage and fee spend – there are requirements to capture data on fee spend, for VAT purposes. There is an opportunity to capture this data within structured form via the delivery of the Expert Management project and the related ECF changes. The requirement and the process that can support the monitoring and payment of VAT on fees will need further consideration.