Detailed information relating to the year-end processing arrangements and the availability of on-line systems can be found in the attached document.

Transcription

1 To: All Broker Contacts All Company Contacts Lloyd s Managing Agents Non-Lloyd s Brokers Software Providers market communication Date: 19 November 2010 Reference: 2010/182 Enquiries to: Xchanging Service Centre, Folkestone Tel: or +44 (0) servicecentre@xchanging.com RE: 2010 END OF YEAR PROCESSING This market communication is being issued to provide customers with information relating to 2010 end of year processing for Xchanging Ins-sure Services and Xchanging Claims Services. Customers are reminded that Xchanging is no longer instructed to implement an early close for the processing of Lloyd s business at the end of the year, refer Xchanging market communication 2006/139 dated 1 November The processing and settlement of both Lloyd s and Company market business will, therefore, continue on a near-normal basis over the Christmas and New Year period (as per the procedures that have been adopted over the last five years). Detailed information relating to the year-end processing arrangements and the availability of on-line systems can be found in the attached document. NICK LAMB HEAD OF SERVICE INSURANCE SECTOR Enc Xchanging Limited Registered Office 34 Leadenhall Street London EC3A 1AX UK Registered in England and Wales No

2 1. Presentation of Premiums, Policies and Claims The last day for allocating a signing number and date in 2010 will be Friday 31 December 2010 (backdating of transactions will not be possible). Brokers should aim to present documentation as early as possible if a 2010 settlement and/or signing date is required. Use of the delinked processing facility for premium related transactions is recommended. Brokers should note that the normal 17:00 hours cut-off time for attaining same-day presentation dates will apply to A&S work packages that are submitted to Xchanging on Friday 24 December 2010 and Friday 31 December 2010 A&S submissions will receive a presentation date of 24 December or 31 December if the work order is successfully loaded to the Market Repository before 17:00 hours on these days. Work orders for packages that are loaded at or after 17:00 hours will receive a presentation date of the next working day. Companies and managing agents are strongly encouraged to identify premiums and claims requiring a 2010 signing date as early as possible and provide brokers with an early instruction to this effect. This approach is intended to avoid the last-minute deposit of high volumes of premium and claims in early/mid December and ensure that transactions are processed and settled within the required timescales. Xchanging intends to operate to normal service levels for error free submissions throughout December. However, there is the possibility that a significant increase in volumes during the latter part of December as a result of the IPT change from 04 January 2011 (see section 3) could adversely impact service levels. In this event, best endeavours will be made to process all work that is subject to a 5 day service level before the end of the year provided it is presented by Tuesday 21 December Similarly, Xchanging aims to process all work that is subject to a 3 day service level before the end of the year provided that it is presented by Thursday 23 December Any work presented after these dates may not receive a 2010 signing. Brokers are therefore encouraged to submit work by, or before 21/23 December The London Market Document Centre and XCS Claims Front Desk will close at 12:00 hours on Friday 24 December 2010 and at 15:00 hours on Friday 31 December Letter of credit processing for Lloyd s business will continue up to year end and brokers are again encouraged to submit this work in advance of 21 December Contracts Incepting in 2011 Where required, Xchanging will be able to process both delinked premium entries for 2011 contracts and 2011 year of account FDO transactions with 2010 signing dates. The exception to this will be Lloyd s transactions incorporating: syndicates whose 2011 trading status is uncertain a consortium of syndicates whose trading status or line allocation for 2011 has not been finalised Page 1 of 6

3 parallel corporate syndicates trading in 2011 (if any). These can only be processed after the natural/corporate syndicate split for the 2011 account is published, which is anticipated to be early December. Brokers should also note that they will not be allowed to release delinked premium entries that relate to 2011 contracts into settlement in For further information on the topic of early signing please refer to market communication 2006/135 dated 20 October UK Insurance Premium Tax (IPT) The rates of UK Insurance Premium Tax (UK IPT) will increase for entries signed by Xchanging on or after 4 January 2011 regardless of the inception date. At the time of publication Xchanging is working with market groups to consider the processing impacts, and will issue a market communication when a formal approach is agreed. However, at this point in time Xchanging suggests that brokers make use of the delinking system and submit presentations as early as possible in December in order that entries can be processed at the rates of tax charged to insureds. Xchanging will be unable to backdate any items that are not signed by 4 January Brokers are advised that every effort will be made to process items presented by 21/23 December 2010 (per section 1) with a 2010 signing number and date. Items submitted showing the existing rates of tax which cannot be signed in 2010 will require the LPAN to be amended by the broker to reflect the new rates. 4. Delinking The delinking system will run on every working day including overnight signing and release to settlement. 5. Processing and Settlement Calendar for Year End 2010 The processing and settlement timetable for year-end 2010 for Lloyd s and Company market business is as follows: Three Day Settlement (Lloyd s and Company Market Business) Transaction processed on or delinked Settlement on: entries released on: Friday 17 December 2010 Wednesday 22 December 2010 Monday 20 December 2010 Thursday 23 December 2010 Tuesday 21 December 2010 Friday 24 December 2010 Wednesday 22 December 2010 Wednesday 29 December 2010 Thursday 23 December 2010 Thursday 30 December 2010 Friday 24 December 2010 Friday 31 December 2010 Wednesday 29 December 2010 Tuesday 4 January 2011 Thursday 30 December 2010 Wednesday 5 January 2011 Friday 31 December 2010 Thursday 6 January 2011 Page 2 of 6

4 Weekly and Monthly Settlement (Company Market Business) Premium and claim entries that are processed during the period 13 to 17 December will be settled on 24 December 2010 for companies that settle business on a weekly basis. Entries processed between 20 and 24 December will be settled on 31 December 2010 for these companies. Entries processed between 29 and 31 December will be settled on 7 January With regard to companies that settle business on a monthly basis, entries processed during the period 30 October to 26 November will be settled on 31 December 2010, and items processed between 27 November and 31 December will be settled on 28 January Please note there will be no netting taking place for these settlements. Each of these settlements will need to be funded separately in accordance with the normal settlement practice involving daily, weekly and monthly settlements. 6. Deferred account scheme Avoiding Funding of Instalments Xchanging market communication 2010/031 dated 12 February 2010 advised that for risks attaching from 1 January 2010 processed under the Deferred Account Scheme a broker may instruct Xchanging to take action to delay payment of a second or subsequent premium instalment if they have not received funds from their client. In order to avoid funding, and in view of the early closure on Friday 24 (see section 7), brokers should submit the request by 17:30 hours on Wednesday 22 December 2010 for payments due on 31 December It is recommended that brokers contact the relevant Xchanging team leader to ensure the instalment can be delayed. 7. Network Services and the Insurers Market Repository (IMR) Extended Hours - The on-line systems will be available until 20:00 hours from Monday 13 December 2010 Reduced Hours - The on-line network will close at 13:00 hours on Friday 24 December 2010 and at 16:00 hours on Friday 31 December 2010 for end-of day processing, after which the network will be available but unsupported. Normal Hours - Normal services will be maintained on 29 and 30 December The above applies to all on-line systems - CLASS, CLASS at Lloyd s (ECF), LORS, Lloyd s Account Enquiry, etc. IMR - Please note that the IMR will be available as normal over the year-end period. However, users should note that the link to CLASS will not be available for the IMR after 13:00 hours on Friday 24 December 2010 and after 16:00 hours on Friday 31 December Page 3 of 6

5 8. Outward Transmissions Lloyd s Business The Daily Signing Messages (USM/BSM/IPCBSM), Syndicate Claim Message (SCM), Monthly Control Message (MCM) and the LORS End-of-Day Message (LIMRIS) will continue to be transmitted as normal*. We anticipate that the messages will be available by 22:00 hours on Friday 24 December 2010 and by 24:00 hours on Friday 31 December Company Market Business The Daily Signing Messages (SIGNIN, DSIGN, ILUCSM, IPCCSM, IPCDSM and IPCBSM) and the Daily Settlement Messages (ILUCSB and WSETT) will continue to be transmitted as normal*. We anticipate that the messages will be available by 22:00 hours on Friday 24 December 2010 and by 24:00 hours on Friday 31 December The Daily CLASS Message (LIMCLM) will continue to be transmitted during the evening of the same day as that of the data*. *Customers should note that Xchanging intends to operate Saturday Numbering (refer to market communication 2004/027 dated 31 March 2004) on Saturday 18 December 2010 and, therefore, the end-of-week messages and ed reports will be transmitted to customers during the evening of that day. 9. Inward Transmissions (Message Sweeps) The last CLASS and delinked premium message collections on Friday 24 December 2010 will be made at approximately 13:00 hours. The last CLASS and delinked premium message collections on Friday 31 December 2010 will be made at approximately 16:00 hours. 10. Lloyd s Outwards Reinsurance Scheme (LORS) LORS interactive and EDI services will be available on working days over the Christmas and yearend period, subject to the limitations and extensions in sections 8 and 9. LORS transactions will be allocated a 2010 signing date if: They are fully authorised on or before 31 December They fall due for default authorisation on or before 31 December Such transactions need to be added to the LORS system no later than Wednesday 22 December 2010 (or Friday 24 December 2010 for non-cash entries and special settlements). They are part of a transaction grouping, and all transactions in the group are fully or default authorised on or before 31 December Company ed Reports All comma separated variable (CSV) files, including daily statements and daily settlements, will be despatched during the early hours of the next working day following that of the data (eg files containing data for entries that are processed on Friday 24 December 2010 will be issued by the Page 4 of 6

6 morning of 29 December 2010 and files containing data for entries that are processed on Friday 31 December 2010 will be issued by the morning of 4 January The only exception to this will be for entries that are processed on Friday 17 December 2010 when Saturday Numbering will apply and transmission of the end of week data is delivered on the evening of Saturday 18 December 2010 refer to section Key Reporting Services The following reports will all be dispatched by Monday 17 January 2011: Lloyd s central accounting balances reports (LCA balances) for the year end Premium VAT syndicate quarterly service US reporting electronic syndicate reconciliation quarterly service (ESR) Outstanding balances by syndicate report. Right First Time Deferred Account Scheme - SDD Amendments Report The following reports will all be available by Monday 24 January 2011: Late premium settlement syndicate report Legacy unsigned policy report (LUP, CMS) UK insurance premium tax quarterly service (IPT) Market quarterly reporting service (MQRS) Policy and premium query reports. In addition to this, if managing agents wish to run reports, for example the LCA balances as at the end of November, or mid-december, then please contact Insurance Business Intelligence Services, Xchanging on +44 (0) or business.intelligence@xchanging.com by Monday 22 November Daily reports will be scheduled to run in line with all other monthly, quarterly and annual services. From Tuesday 4 January 2011, due to the high volume of reporting activity, there may on occasions be a small delay in delivery of some of these daily reports. Normal service will resume from Monday 10 January Legacy Unsigned Policies Content Management Service (Lloyd s) Customers are advised that the last date in 2010 for files to be submitted to Xchanging for purging items from the Lloyd s Unsigned Policies Report will be Monday 20 December Paper Reports Daily statement and settlement reports will be available from the London Market Document Centre on the next working day following the processing of the transactions. Page 5 of 6

7 14. Scheme Canada (Lloyd s) The November monthly bordereau file is scheduled to be received from Telus in Canada on Friday 24 December 2010, and it is planned that this file will be processed by Xchanging on the evening of the same day. It is anticipated that both SCMs (advising messages) and USMs (settlement messages) will be processed and despatched to the market by the end of day on 24 December 2010, with settlement taking place on Friday 31 December Please note that as with every monthly bordereau file, there will be a number of claims that will require manual investigation and advising. This usually accounts for 1-2% of the total volume, or an average of approximately 30 contracts. Xchanging will make best endeavours to complete these manual investigations and issue the relevant SCMs and USMs in advance of Friday 31 December Other Information There are numerous other reporting services and output delivered by Xchanging at year-end. If you have any questions concerning the above or related matters, or any aspects you feel are not covered, please contact the Xchanging Service Centre on or +44 (0) , servicecentre@xchanging.com. Page 6 of 6