Lloyd's Market Association Bulletin
LMA21-039-SR | 02 November 2021
JSC - Bordereaux and Risk Information Guidance Note
The subject of Risk Information captured within Lineslip Bordereaux was brought to the attention of the Joint Specie Committee arising from general concern over a lack of consistency and quality in the granular risk data provided. Underwriters and brokers are coming under increased scrutiny since the FCA case on BI last year and it is therefore in everyone’s interest that the data provided is of a high standard and as complete as possible. JSC members recognise the need to address the issue with the expectation that reporting under lineslips is likely to be required to adhere to the same standards as those prescribed for binders and LBS lineslips currently and Underwriters must be able to demonstrate prudential processes to regulators.
Notably, information on singular locations, including those situated in natural catastrophe zones (per Lloyd’s RDS areas) or areas of significant accumulation in values such as fine art storage locations, major vaulting centres and freeports is not always available to Underwriters.
Consequently a working party was formed to identify key data-fields and offer guidance on best practice concerning exposure management. Members subscribing to Lineslips are encouraged to refer to the bordereaux template as set out in the latest Lloyd’s v5.2 Coverholder Reporting Standards users guide but, as a minimum, to seek to ensure that sums insured, total values at risk, attachment points, and details of individual location addresses (including zip codes) are included.
Technical Executive, Underwriting