Brexit 

In June 2018, a small working group was formed, with representation from Atrium, AXA XL, Beazley, Brit, Chubb, Hiscox, MS Amlin, Lloyd’s and the LMA. The group met every other week throughout 2018 to work through the claims specific needs and issues of Brexit. As there has not been much change since the start of 2019, the meetings have only occurred where a development dictates.

The output of these meetings has been enshrined in to the following documents:

• LBS Claims Guidelines - published on 22 October  2018, and due to be refreshed in July 2019
• Q&A Document – will be included in the next issue of the LBS Claims Guidelines
• Do’s & Don’ts document – circulated to MAs in late 2018 
• Coverholder Toolkit & Addendum – published w/c 19/11/18 
• TPA Toolkit – published on 16/10/18. Updated version will be issued in the summer of 2019 
• LBS0065 TPA Agreement & Guidance Note – published on the Lloyd’s Wordings Repository 
• LBS0066 Loss Fund Agreement – published on the Lloyd’s Wordings Repository
• Lloyd’s Brexit Town Hall - 30 May 2019.

Single Claims Agreement Party (SCAP) & LBS Issues

Following a number of requests from the market, the LMA have approached Lloyd’s concerning the use of SCAP when LBS are the slip lead.

LBS are obviously authorised under the Financial Services and Markets Act 2000 by virtue of an EEA reciprocal agreement, meaning that LBS meet the SCAP clause criteria.

However, if we agree to let LBS lead a slip with a SCAP clause applied, then by the same criteria we should allow AIG Luxembourg for example, to contract and lead a slip as AIG are admitted on the same basis as LBS.

This was not the original intention of SCAP’s application and we await the advice from Lloyd’s.

Use of AiMS for Lloyd's Brussels business

Lloyd’s Brussels has decided that the Lloyd’s audit system (AIMs) must be used for scheduling all 2020 audits of coverholders and delegated claims administrators that act on  behalf of Lloyd’s Brussels.  This will cover both co-ordinated and solo audits.  

This requirement, which will be effective from 29 July, will ensure Lloyd’s Brussels has the correct audit data and can demonstrate the necessary audit oversight to regulators.

Mandating the use of AIMS also means the audit process is risk-based and coordinated centrally, making the audit process more efficient for all parties involved with scheduling third party audits. To date AIMS has cut the number of audits by 1500 since it was introduced in 2016 and we expect to see similar benefits for Lloyd’s Brussels business.