To: All Broker Contacts market communication Lloyd s Managing Agents Date: 3 July 2014 Reference: 2014/080 Enquiries to: Nicole Mott, Claims Services Tel: +44 (0)20 3604 5539 Email: nicole.mott@xchanging.com Steve Guarnori, Claims Services Tel: +44 (0)20 3604 5098 Email: steve.guarnori@xchanging.com RE: XCHANGING S NEW TECHNICAL PROCESSING CONTRACT NEW SERVICE DEFINITION ROLES AND RESPONSIBILITIES This Market Communication is being issued to provide managing agents and brokers with important relating to the new Technical Processing Contract agreed between Lloyd s managing agents and Xchanging. Specifically, it relates to the roles and responsibilities of the various parties in ensuring data capture and its accuracy onto CLASS. Detailed work on this was undertaken by Lloyd s, the LMA, and Xchanging, and the results of that work have been incorporated into the new contract, which has now been signed by all managing agents. In the new Technical Processing Contract, there are a number of data fields required for processing, that are now the responsibility of the leading underwriter to provide to Xchanging. The leading underwriter is also now responsible for the accuracy of the data to Xchanging for these fields. Under the new contract, there are variances in the extent to which Xchanging will identify and capture between: - Business including lineslips, and -. Continued... Xchanging Limited Registered Office The Walbrook Building, 25 Walbrook London EC4N 8AQ UK Registered in England and Wales No. 3616858
Xchanging therefore thought it would be helpful to provide a table of the data fields Page 2 (attached) that the leading underwriter is now responsible for under the new contract, and for the sake of ease the outcomes for both Business and are also included. The changes take effect from 7th July 2014. Where the required is not forthcoming, depending on the field, will either: - Pend the claim (if ECF), query back to the leading underwriter for 48 hours, as per our existing pend rules. If no response is received within 48 hours, then is obliged to reject the claim advice, or - Query the claim back to broker if a paper file, or - For certain fields, continue to use its best endeavours to process the claim if it can. These responses are in accordance with our contractual obligations as set out in the new contract between managing agents and Xchanging. Please note that, although the FIL and DTI codes will be Xchanging s responsibility to identify, the validation will be carried out on the OSND presented to Xchanging and therefore if there are any amendments that need to be made these will result in chargeable corrections if the OSND presented is incorrect. For the avoidance of any doubt, Treaty Business (proportional reinsurance) is unaffected by these changes, and will continue to provide exactly the same service, as it has done in the past. We recognise that the new roles and responsibilities outlined above shift more emphasis onto leading underwriters to provide Xchanging with accurate submissions, and until the precise impact of such changes have been ascertained, Xchanging will be monitoring query and rejection rates in certain areas. If you have any queries or questions relating to the above please contact: Nicole Mott or Steve Guarnori, details as above. ANTHONY CROYDON HEAD OF SERVICE XCHANGING INSURANCE SECTOR Enc
Field in Description Business Type Who is If missing or not Comments R&R/Contract responsible correct for accuracy response of data? 12, 102 Claim narrative Note on paper files will continue to use their best endeavours to capture narrative. For ECF claims, where lead fails to enter in comments, narrative will be pulled-through from broker and not amended. Where Loss Description is blank or meaningless, will query with the LU, and if no response within 48 hours reject the transaction. & will continue to update the claim narrative on CLASS. 14 Date of Loss Note on paper files will continue to use their best endeavours to identify this 15 Year of account If info is not will pend, query and if no response within 48 hours, reject transaction. & will continue to identify the applicable year of account.
16 Signing number will pend, s are encouraged to provide this as early as possible in the & date query, and if no advising process to reduce the risk of delays at the point of response within 48 settlement. the by hours, reject s, and where APs exist s will need to select the SN&D(s) they wish Xchanging to use. & will continue to identify the correct Signing Number & Date. 20-22 Slip orders will Process s are encouraged to pay heightened attention to this area. & will continue to identify any orders. 23 Settlement will Process currency to be used 26-27 CAT and PCS will Process If s wish a Cat code or PCS code to be captured on Codes CLASS they will need to clearly identify this. & For will continue to break Cat losses out of the claims bordereau.
29 Cause of loss will Pend, query s will need to select a valid cause of loss code to enable code and if no response to process the claim. This is an area leaders are encouraged to within 48 hours, reject pay attention to, to reduce the number of rejections. 31,71 Indemnity reserve 32 Fee / Expense Leads should provide any breakdown between Loss / Expense and reserves Fees. 34 Current broker will Pend, query This is applicable only if the current broker is different to the original and if no response broker, and there is no evidence of agreement to change broker. within 48 hours, reject 38, 39 Policy limits and will use best excess endeavours to capture info, but if not clear will query back to leader
40,41 Policy period may need to contact the broker if Certificates have not been Cover period in order to obtain relevant FIL and DTI codes for processing. 45-48 Insured / If not correct or It is the s responsibility to check that these fields have been Reinsured / complete, will entered correctly, especially on reinsurance business. Coverholder Pend, query and if no response within 48 hours, reject 49 Identification of If s wish these fields to be captured on CLASS they will vessel / Aircraft need to clearly identify this to. / Conveyance 50-52 Loss name, If s wish these fields to be captured on CLASS they will claimant name need to clearly identify this to. 53-59 DOL / DCM fields
60-61 Loss location / If s wish these fields to be captured on CLASS they will Voyage need to clearly identify this to. 33,75-78,84, 86 Expert data, expert type, references etc. 72, 127 Settlement rate will only of exchange complete a sanity check and query if ROE is far away from official rates 109-111 Paid to date loss, fee and expense 123-125 Paid this time will use best If it is not clear from the file, how reserve is to be split, may loss, fee and endeavours to process all amounts against Paid Loss field in CLASS or query expense calculate split presentation.
118-120 O/S loss will use best If it is not clear from the file, how reserve is to be split, may amount loss, endeavours to process all amounts against Outstanding Loss Reserve field in fee and expense. process CLASS or query presentation. 121 O/S Loss will query with s will need to advise code to be used on all new TBA claims, qualifier lead if Lead has not in order for them to be processed. Existing claims which continue to selected an appropriate TBA qualifier code have a non financial number will assume to be the same code as previous unless the informs us otherwise. 129,130 Subrogation will need to highlight if they want these indicators ticked on and litigation CLASS indicator. 132 Identification of s will need to highlight if they want a separate Medicare any Medicare entry established on CLASS. claimants.