Coverholder reporting Standards

Report
Lloyd’s and acord
coverholder reporting standards
29th September 2011
Agenda

Why standards?

What are the standards?

Tools to help you

Changes in version 2

ACORD and XML
© Lloyd’s
Coverholder reporting Standards: The business problem
Coverholders
have to
provide
information on
risks,
premiums and
claims
Different
syndicates
asking for
different info
Regulators
asking for
more detail
Re-keying
How can we
make it easier for
coverholders?
© Lloyd’s
Coverholder reporting Standards: the current position
US Property Exposures – ACORD ER3001
Premiums
Claims
© Lloyd’s
Standards are the minimum
requirements
Standards
state the
minimum
information to
provide
Mandatory
fields must be
provided in
all cases
Conditional
fields should
be provided
dependent on
conditions
It is
preferable
that
Management
Information
Fields are
provided
© Lloyd’s
Mandatory information - premiums
Core risk information:
Coverholder name
UMR or Agreement Number
Reporting period
Class of business, Lloyd’s risk code or binder section
Certificate reference
Insured or reinsured name and country
Risk inception and expiry dates or period of cover
Type of insurance – direct or type of Reinsurance
Location of risk country
Paid premium transaction information:
Transaction type,
Original currency
Gross premium paid this time
Commission % and amount
Taxes and levies,
Net premium to London
Settlement currency
© Lloyd’s
Mandatory information - claims
Coverholder name
UMR or Agreement Number
Reporting period,
Class of business, Lloyd’s risk code or binder section
Certificate reference
Insured or reinsured name and country
Risk inception and expiry dates or period of cover
Location of loss country
Claim reference
Cause of loss,
Claim status
Refer to underwriter?
Denial?
Original currency
Paid this month, previously paid, reserves and total incurred fees
Paid this month, previously paid, reserves and total incurred indemnity
© Lloyd’s
www.lloyds.com/coverholderreportingstandards
© Lloyd’s
Introductory Leaflet
© Lloyd’s
New User Guide
© Lloyd’s
Recommended Templates
© Lloyd’s
Changes in version 2

NRRA

ELTO

IMO ship identification number

Country of registration

Wet marine

Referred to London

Medicare
© Lloyd’s
ACORD XML for premiums and claims


Working groups in progress
Amending ACORD P&C to include fields in Lloyd’s premiums and
claims standards
© Lloyd’s
ACORD Exposure
Reporting Standards
Puneet Bharal
Head of Advisory Services, UK and Europe, ACORD
© ACORD 2011
What are we dealing with?
• A changing World
• Climate change
• Terrorism
• Frequency and severity of natural catastrophes
• New, rapidly developing economies and the
need for asset protection
• Greater insured losses
• Mature markets
• Developing markets
• Insurance relies on an appetite for risk
• Quantifying the risk through reliable
• Data
• Models
© ACORD 2011
September 2011
Quantifying Exposure – What do we need to
know?
• What it is
• Where it is
• What it’s worth
© ACORD 2011
September 2011
Quantifying exposure – Why do we need to
know?
• Underwriting need
• Reduce uncertainties / sensitivities
• Better event response
• Better understanding of risk
• International issue for insurers/reinsurers writing global risks (not US
specific)
• Analytical need
• Better use of models
• Less defaulting / average assumptions
• Quantify & Qualify results
• Help meet and manage expectations
• Management / operational need
• Utilise resource more cost effectively
• Reduce the reformatting of spreadsheets
© ACORD 2011
September 2011
Internally, who needs exposure
information?
Capital
modellers
Business
Clients
planning
Data
format
Management
& quality
& IT
Cat
modellers
© ACORD 2011
Reinsurance
placement
Underwriters
September 2011
Industry Value Chain – the Exposure
Dataflow
Financial
Markets
Reinsurance
broker
Original
insured
Reinsurer
Insurer
Agent
Surplus/
specialty
lines insurer
MGA
Surplus/
specialty
lines broker
Reinsurance
broker
Retrcessionai
rre
Retrcessionai
rre
Retrocession
airre
Risk
Manager
© ACORD 2011
September 2011
Not so long ago…
• Little data supplied, if any
•
•
•
•
Paper format only
No database to capture schedules
Exposures recorded on cards / datasheets
Manually calculated exposures
• No consistency in data definitions
• Mish-mash of external codesets
© ACORD 2011
September 2011
So what changed?
•
•
•
•
Technology
Evolution of demands
Regulation
Large losses
• Andrew
• WTC
• Katrina
• Christchurch
• Tohoku
© ACORD 2011
September 2011
Data quality – the current environment
© ACORD 2011
September 2011
How Can Standards Help?
• Data standards provide the lifeblood of the
industry to each player – reliable data
• Quality data helps to address the majority of
the industry’s concerns
• Standards makes data management simpler
and more reliable
• One way of sharing data with all business partners
• A reliable data standard allows all companies to
focus on their core concerns
• i.e. Doing smart things with the data instead of just
cleansing it
© ACORD 2011
September 2011
ACORD Exposure Reporting
Standards
• Responding to industry-wide requirement to
have an industry standard to capture and
move exposure data from the primary
insurance market through the insurance
value without loss of data fidelity
• Over 60 stakeholders in the Working Group,
supporting the development and
implementation of the standard.
• Co-chaired by Lloyd’s, Swiss Re and Zurich
© ACORD 2011
September 2011
ACORD Exposure Reporting
Standards
• Working Group has concluded
• Spreadsheet standards available for:
• Binding Authority property schedule – ER3001
• Simple address level reporting – ER3002
• Aggregated exposure reporting – ER3003
• XML standard available for all the above as well as:
• Comprehensive Exposure Reporting
• Insurance specific codesets for:
• Perils
• Construction types
• Occupancy (usage) types
• GeoCode Match Levels (precision of LatLong
coordinates)
© ACORD 2011
September 2011
Success criteria for standards...
• ...is not that they exist, but that they
are being used
• Over 80% of Lloyd’s syndicates, by
capacity, support the submission of
delegated authority property reports in
ER3001 format
• The three main cat modelling vendors
have committed to implementing ACORD
import and export functionality into their
systems – AIR Worldwide, EQECAT and RMS
© ACORD 2011
September 2011
Just an underwriter’s problem?
• Benefits for everyone
• Service-levels Up ; Costs Down
• Benefits policyholders, brokers and insurers
• Standardized data leads to innovation
• Exposure data warehouses & data mining
• Integration with capital models & observe capital
market opportunities
• Cash reserves management / regulatory reporting
• Post-Event Validation
• Faster and more accurate reporting
• Robust links to claim reporting
• Loss adjusters / TPA append claim data to exposure
© ACORD 2011
September 2011
Two Blue Hill Plaza
3rd Floor
Pearl River, NY 10965
USA
+1 845 620 1700
London Underwriting Centre
Suite 1/3
3 Minster Court
Mincing Lane
London EC3R 7DD
United Kingdom
+44 (0)20 7617 6400
Wednesday, September 24, 2008

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