Date: 3 April 2020
Title: Lloyd’s Insurance Company – Changes to bulking lineslip processing
Lloyd’s Insurance Company S.A is mandating the submission of risk and premium reports for all Lloyd’s Europe risks attaching to a bulking lineslip incepting on or after 1 January 2021. This requirement is in line with regulatory and financial reporting standards across the Belgian insurance sector.
Frequency and submission channel will align with risk and premium submissions established for Lloyd’s Coverholder Appointment Agreements.
- All submissions must comply with the Lloyd’s Coverholder Reporting Standards (currently version 5.2)
- Risk and premium reporting frequency are monthly.
- Submission will be via DA SATS.
Note: The reporting deadlines for risk and premium reporting are available below.
The lead will be held accountable by Lloyd’s Europe for ensuring the submission of risk and premium reports on DA SATS within the required timescale. However, subject to the agreement of the broker, the submission of risk and premium reporting information can be
delegated to the broker, in the Bulking Lineslip Agreement.
Bulking lineslip facilities cannot be used where the lead managing agent is unable to comply with this requirement and alternative methods of placements should be used.
The operational model implemented when Lloyd’s Europe commenced operations in November 2018 does not permit the capturing of individual risk and premium information on risks bound under a bulking lineslip*. At this time, the market was informed it was Lloyd’s
Europe intention to implement a more robust operational model that allowed capturing of individual risk and premium directly from the managing agent in the future.
Impact on existing Lloyd’s Europe bulking lineslips
These changes will take effect for bulking lineslips incepting on or after 1 January 2021. There is no impact on bulking lineslips incepting prior to 1 January 2021.
Changes to the Lineslip Market Reform Contract (MRC)
The Market Reform Contract (Line Slip) Implementation Guide Lloyd’s Europe Supplementary Addendum will be updated to include wordings which specify roles and responsibilities and clarifies the reporting submission timelines.
For risks written, the required risk information must be submitted into DA SATS on a ‘fully approved’ basis as follows:
Jan – Mar: within 32 days of month end;
Apr – Jun: within 23 days of month end;
Jul onwards: within 15 days of month end.
Paid premium information must be submitted into DA SATs on a ‘fully approved’ basis no later than 5 working days before the last working day of the 3rd calendar month, after the end of the reporting month.
- For queries on use of DA SATs for Lloyd’s Europe bulking lineslip submissions please contact LIMOSS here.
- For general information on the Lloyd’s Coverholder Reporting Standards please here.
- Guidance on the Lloyd’s Europe bulking lineslip market submission model can be found here.
- Guidance on the Lloyd’s Europe bulking lineslip risk and premium data requirements can be found here.
- A risk data entry template to facilitate capturing of risk bound information on risks attaching to Lloyd’s Europe bulking lineslips can be found here.
Please submit all queries to LloydsBrussels@lloyds.com and insert in the subject header “Bulking Lineslips”
*The model implemented at go live derived risk and premium information from signing messages produced by DXC.