DELINKING USER GUIDE March 2010
Contents
1. 25 02 18 11 53 56 RELEASE FOR SETTLEMENT MORE LIST ITEMS PENDING BROKER 8942 ENTRY ORIG PAY REL MKT SIGNING REF BKR REF 1 S D D TYPE CURR AMOUNT DUE TYPE IND _ IL PMHO90000030601 001 14 02 2009 NPM DKK 78758 80 N IL PMHO9000O0040601 002 14 02 2009 NPM USD 22500 00 N LR 0901060000022 901 14 02 2009 NPM DKK 78750 00 N LR 0901060800030 002 14 02 2009 NPM USD 22500 00 N _ LR 0907072000274 WILLIAMS 01 08 2009 NAP GBP 4400 00 N _ LR 0907072000282 WILLIAMS 01 08 2009 USD 4400 00 N IL APHO90001450707 WILLIAM8 01 08 2009 NAP GBP 220 08 N IL APHO90001460707 WILLIAMS 01 08 2009 NAP USD 22000 00 N LR 0907072000233 WILLIAMS 01 08 2009 NAP GBP 170 00 N LR 0907072000241 WILLIAM8 01 08 2889 USD 17000 00 N IL APHO90001470707 WILLIRMIG 01 08 2009 GBP 158 00 N _ IL APHO90001480707 WILLIAMID 61 08 2009 USD 750 00 N LR 0907072000258 WILLIAMI 01 08 2009 NAP GBP 220 N _ LR 0907072000266 WILLIAMID 01 08 2009 NAP USD 1100 00 N IL APHO90001490707 WILLIAM 01 08 2009 NAP GBP 500 00 N NO PREVIOUS PAGE F1 HELP F3 QUIT FS ACTION SELECTIONS F7 BACK F8 FWD F11 RIGHT F12 MENU 1 Sess 1 10 133 30 250 XDEF0364 11 10 of 27 7 5 Delinking User Guide March 2010 Screen 3 transaction details This screen displays details of a selected transaction If a number of transactions have been selected either by the user or by the system for grouped items each transaction will be presented2. Alternatively an effective date can be applied to the release This will have the effect of releasing the premium into settlement on a specified future date rather than settling the entry three working days after the release date A final screen is optionally available to show the amounts and due dates of any deferred instalments These details cannot be amended by the broker Page 7 of 27 7 2 7 3 7 3 1 7 3 2 Delinking User Guide March 2010 Convertible currency entries For convertible currency transactions the broker is required to enter a nominal rate of exchange on their LPAN s at the delinked stage This can be updated by the broker to show the true rate of exchange when they release the entry into settlement The system will validate the exchange rate used by the broker against the rate that is held by Xchanging on their exchange rate tables The rates of exchange held on this table are updated on a weekly basis When validating the exchange rate that the broker has used the system applies a 10 tolerance against the rate of exchange that is held on the table If the broker wishes to enter an exchange rate outside of that tolerance it will be necessary to contact Xchanging to execute the release refer to section 13 Screen 1 release for settlement Filter options This screen allows brokers to specify selection criteria for the transactions they wish to view and sort options to determine the order in wh
3. 900 00 FI HELP F3 QUIT FS RCTION SELECTIONS F7 BRCK F8 FWD F11 RIGHT F12 MENU 1 1043330250 When viewed the reason for cancellation will also be displayed This screen can also be viewed via the LPC Sus aus CINE De Ede pase Fons Options Took yew Window Heb axes RSS 0 IPHI21M 0181 FISLOH LPC 25 02 10 18 86 11 IPC CANCELLATIONS TRANSACTION DETAILS BROKER 8942 CONTACT LESLEY MARKET LIRMA UMR 0942 CRNCDELINK84 BROKER REFS 1 2 TESTO4 TESTO4 BUREAU SIGNING REF 8718238888185 CANCELLED BY 8718248188812 BUREAU CHECKER LOH PHONE ENTRY TYPE APM ADJUSTABLE PREMIUM INSURED REINSURED TEST 84 PERIOD OF POLICY NETT PREMIUM ORIG GBP 22580 00 5 0 0 14 02 2008 REASON FOR CANCELLATION TEST FOR WORK PACKAGE FI HELP F3 QUIT F12 MENU 1 Sess 10 133 30 250 19 24 16 of 27 Delinking User Guide March 2010 Policy status This screen which can be accessed by pressing F9 on the Transaction Details screen provides details of policies that have been signed for delinked entries W 1 LPC flame File Edit Transfer Fonts Options Tools View Window Help axes rmx GQ114KM 8181 FISLOH Le 25 02 18 18 07 86 PF POLICY STATUS DETAILS SIGNING REFERENCE PMHBOSBBEBES3B6B POLICY TYPE STATUS CHECKED BY LOH ON COMPLETE POLICY DETAILS ARE ONLY AVAILABLE IN RESPECT OF
4. FI HELP F3 QUIT FT PRGE BACK F8 PAGE FWD 1 Sess 1 10 133 30 250 XDEF0364 11 Page 12 of 27 8 2 Delinking User Guide March 2010 Insurer delinking enquiry screens companies Company insurer enquiry function Company market delinked entries do not appear on the LPC signings history enquiry system until they have been released into settlement A separate enquiry function is provided for companies allowing users to view delinked signings for which they are on risk and that are present on the suspense database awaiting settlement The IPC DELINKED COMPANY ENQUIRY system can be found as an option on the GENERAL ENQUIRIES menu The following screens will be displayed Screen 1 IPC delinked entries awaiting settlement This screen allows users to enter selection criteria and sort options for the enquiry The sort options allow the results to be displayed according to Settlement Due Date or Signing Date i e the date the items were added onto the suspense database IPG310M 0185 FISLOH 1 25 02 10 12 01 34 IPC DE LINKED ENTRIES AWAITING SETTLEMENT SELECTION OPTIONS COMPANY BROKER SORT OPTIONS SORT BY SETTLEMENT DUE DATE _ FROM OR SORT BY ITEMS RDDED FROM OR SORT BY COMPANY REFERENCE 1 _ FROM FI HELP F3 QUIT F12 MENU FI4 CRNCELLED SIGNINGS 1 Sess 1 10 133 30 250 XDEFO364 7 24 Page 13 of 27 8 3 8 4 Delinking User Guide Ma
5. in turn For users who only have enquiry authority all data will be protected For users with update and release authority the following fields can be amended e Broker contact name and telephone number Broker reference 1 and 2 Rate of exchange for convertible currency items only Net premium for settlement for convertible currency items only The release indicator The effective date for the release To release an item into settlement enter Y in the Release for Settlement field Optionally an effective date can also be entered Items marked for release will remain on the suspense database until the end of the current day 7pm or the end of the effective date if entered Up to that time it is possible to de activate any items marked for release by entering N in the release field In some circumstances the system may prevent the release of an item e g if a premium warranty is in effect and the warranty date has expired An error message will be displayed to explain the reason for not allowing the release In these cases it will be necessary to contact Enquire tel 01634 887899 or e mail enquire xchanging com before 1pm on the day when release is required to execute the release refer to section 6 3 4 PAI PR2 PRO lt 1 7 IPB120M 8181 FISLOH LP 25 02 18 11 54 36 RELERSE FOR SETTLEMENT TRRNSRCTION DETRILS BROKER 0942 CONTACT LESLEY MARKET LIRMA PHONE 4649 UMR B 094
6. is sent when the delinked signing is added to the suspense database There are separate messages for ILU and LIRMA business IPCCSM and IPCDSM These messages follow the same format as ILUCSM and DSIGN but do not carry the same level of signing information i e settlement currency amounts exchange rates and actual payment dates are not provided Companies also have the option of receiving details of delinked premium signings via an e mailed CSV file Details of delinked entries that were processed on the previous working day are provided within report DL6063 Company list of IPC delinked signings This file provides companies with details of both ILU and LIRMA signings Further information can be obtained by contacting the Xchanging Service Centre tel 0870 380 0830 or e mail servicecentre xchanging com Company reference corrections Companies can correct their underwriting stamp references on delinked original premium signings before they are released into settlement via the IPC De link Company Enquiry function which can be accessed via the General Enquiries menu within the LPC mainframe system Lloyd s messages Syndicates can choose whether to receive details of delinked transactions in the form of an additional Underwriter Signing Message USM prior to premium payment USM opted in If a syndicate opts in they will be sent the first USM when the initial delinked item has been p
7. mailed reminders are issued to brokers to prompt premium payment no such service is provided on Lloyd s business and Xchanging does not monitor and chase brokers to release delinked premium entries into settlement Chronological settlement of premiums Wherever possible brokers should ensure that delinked premiums are released into settlement in the correct chronological order e g an additional premium for the 3 quarter declarations on a bulking lineslip should not be released ahead of the AP for the 2 quarter declarations Page 22 of 27 10 14 11 11 1 11 3 1 Delinking User Guide March 2010 Claims processing Brokers should note that although claims advices can be set up on the ILU and LIRMA CLASS systems once a de linked premium has been processed it is not possible to process a CLASS settlement entry until the premium has been released into settlement No such restriction currently exists within the CLASS Lloyd s system With regard to paper based Lloyd s claims Xchanging will consult with the Lloyd s Leader in order to determine whether the premium needs to be settled before the claim can be paid Signing information and messages Company market messages and reports For companies delinked signings are not included in the normal ILUCSM and DSIGN messages until they are released into settlement However companies have the option of receiving an additional early delinked signing message that
8. recommended that brokers obtain such an agreement by including a statement along the following lines under the BUREAU ARRANGEMENTS heading within the SUBSCRIPTION AGREEMENT section of the Market Reform Contract e Insurers agree that the broker may settle premiums for this contract at different times or e Insurers agree that the broker may release delinked premiums for this contract into settlement at different times For such transactions it is important for brokers to clearly indicate to Xchanging that such delinked premium entries must not be grouped together when they are processed All of the relevant LPAN s must be clearly marked with the words DO NOT GROUP Further information can be found in Xchanging market communication 2007 031 dated 30 March 2007 Page 19 of 27 10 3 Delinking User Guide March 2010 For transactions received by Xchanging on or after 1 April 2010 the position is reversed Transactions will be treated as ungrouped unless insurers stipulate in the Market Reform Contract or brokers otherwise request that grouped settlement is required Where either the broker or insurers require that transactions be grouped for settlement this should be recorded under the BUREAUX ARRANGEMENTS heading within the SUBSCRIPTION AGREEMENT section of the Market Reform Contract documentation or endorsed thereto with the appropriate agreement using a provision along the followin
9. settlement Users need to ask their Security Administrator to add the function to their user profile Brokers who cannot access the LPC enquiry systems should contact the Xchanging Service Centre tel 0870 380 0830 or email servicecentre xchanging com Page 6 of 27 6 2 6 3 Delinking User Guide March 2010 RESETT message As an alternative to the interactive trigger brokers can use the RESETT EDI message to release delinked entries RESETT is the globally recognised ACORD standard message for financial account data and allows brokers to automate the release of items into settlement Copies of the RESETT specification can be obtained from the ACORD website www acord org Release by Xchanging As an alternative to using the interactive system or the RESETT message brokers can contact Xchanging to request that items are released into settlement Brokers may need to use this option because e they do not currently have access to the interactive system e the transaction is subject to a premium warranty which has been breached refer to section 10 3 e the rate of exchange that has been applied is outside of the tolerance allowed within the delinking system refer to section 7 2 a premium payment warranty has been applied which has a different effective date to the Settlement Due Date Details of how to manage this particular scenario may be found in section 10 3 In these instances the broker should initially c
10. 2 IPCTEST12 BROKER REFS 1 2 WILLIAMS BUREAU SIGNING REF 8987872888274 BUREAU CHECKER LESLEY HUGHES PHONE 81303 850111 ENTRY NAP AP INSURED REINSURED TEST PERIOD OF POLICY 01 04 2000 TO 31 03 2001 NETT PREMIUM ORIG GBP 4400 00 EXCHANGE RATE NETT PREMIUM SETT GBP 4408 08 S D D 81 08 2009 NO INSTALMENTS PAYMENT TYPE DAILY WEEKLY RELEASE FOR SETTLEMENT Y N EFFECTIVE DATE FI HELP F3 QUIT FO VIEN INSTALMENTS F6 OVERRIDE WARNINGS F12 MENU F9 POL STATUS 1 Sess 1 10 133 30 250 XDEFO364 21131 11 of 27 Delinking User Guide March 2010 Screen 4 instalment details This screen lists any deferred premium instalments for the transaction The screen which is selected by pressing F5 on the Transaction Details screen will only be displayed if deferred instalments are present If the rate of exchange has been updated for a convertible currency transaction Xchanging will automatically re calculate the net instalment amounts The broker cannot update this screen W 1 LPC flame HER file Edit Transfer Fonts Options Tools Window Help axs Dot a 7 1 6 8185 FISLOH LP 25 02 18 12 80 49 RELEASE FOR SETTLEMENT INSTALMENT DETAILS BROKER 8942 CONTACT LESLEY BHWEB6 SETTLEMENT DUE DRTE TYPE CURRENCY AMOUNT 01 12 2809 05 2258 80 01 03 2810 05 2250 00 81 86 2010 D USD 2258 80 81 89 2810 D USD 2258 80
11. 8 FWD F11 RIGHT F12 MENU 1 10 133 30 250 XDCF0964 7 Screen 3 transaction details This screen displays the detail of the selected transaction W 1 LPC XE fe Edt Ironder lors Tool yew Window tiep exe CP SPSS mnm og IPB320M 0185 FISLOH LPG 25 02 10 12 03 06 IPC DE LINKED ENTRIES AWAITING SETTLEMENT TRANSACTION DETAILS COMPANY X1111 TEST COMPANY NO 1 COMPANY REF TEST SIGNED LINE 50 0000000 SLIP ORDER 1 2 100 0000000 100 0000000 TEXT BROKER 0942 TEST BROKER B2 CONTACT LEE PHONE UMR B 8942 DELINKXOLB1 BROKER REFS 1 2 LEE LEE BUREAU SIGNING REF 0812020000137 ENTRY TYPE NPM PREMIUM INSURED REINSURED TEST PERIOD OF POLICY NETT PREMIUM ORIG GBP 50 00 S D D 81 81 2818 NO INSTALMENTS 2 FI HELP F3 QUIT FS VIEW INSTALMENTS F12 MENU 1 1013330250 Page 14 of 27 8 5 Delinking User Guide March 2010 Screen 4 instalment details This screen lists any deferred instalments for the transaction The screen which is selected by pressing F5 will only be displayed if deferred instalments are present W 1 LPC BROKER DUE DATE 91 01 2009 01 01 2010 fle Edt Transfer Fos Opies Tods yew Window Help RSs mem oF IPB338M 0185 FISLOH IPC DE LINKED ENTRIES AWAITING SETTLEMENT 9942 FI HELP F3 QUIT F7 PRGE BACK F8 PAGE FWD LP 25 82 18 12 84 45 INS
12. DELINKING USER GUIDE March 2010 Delinking User Guide March 2010 Document History March 2010 Change in default from grouping to ungrouping Table of contents 1 Introduction P3 2 Contract certainty P3 3 Benefits of delinking P3 4 Scope of delinking P4 5 Process explanation P5 6 Releasing premiums into settlement P6 7 Broker delinking trigger screens 8 Insurer delinking screens companies P13 9 Lloyd s enquiry systems P17 10 Special processing arrangements P19 11 Signing Information and messages P23 12 Testing P24 13 Contact information P24 Appendix A Delinking stamp P25 Appendix B Release settlement timetable P26 Appendix C Delinked signing file content P2 Note Wherever the word Insurers is included in this document it should be deemed to refer to insurers or reinsurers Page 2 of 27 Delinking User Guide March 2010 Introduction Delinking was introduced in October 1999 as one of the International Process Compliance IPC initiatives Delinking separates the submission of premium closing information to Xchanging from the instruction to settle the transaction The London market reform programme initiated in 2000 championed delinking as a means of speeding up both premium payment and the issuance of contract documentation to the client Delinking has been further endorsed by the market reform progra
13. POLICY DOCUMENTATION CHECKED AFTER 27 84 1998 POLICY STATUS NARRATIVE FI HELP F3 QUIT F8 PAGE FWD F12 MENU 1 Sess 1 10 133 30 250 XDEF0364 216 Lloyd s enquiry system facilities Managing agents and brokers can review details of delinked Lloyd s premium entries by accessing the Account Enquiry system The enquiry system highlights whether the entry has been processed but not yet settled or whether it has been released into settlement linked Customers who cannot access this system should contact Xchanging Service Centre 0870 380 0830 email servicecentre xchanging com Page 17 of 27 Delinking User Guide March 2010 9 1 History screen Signing information can be viewed within the Slip History screen within the Lloyd s Account Enquiry system Xchanging about logout ETE stint fal corr Slip Broker 4000 UMR B4000ANNIE2 Treaty No Expand Account Reference Policy Holder Endorsement Description UMRB400DANNIE2 sCTNOi PD 01 01 2006 SCRIPT NO G TA PM GBP FA PM 21401 24 10 2006 NEW GBP Premium 9 2 Delinked message The warning message shown below will be displayed if the premium entry has been processed on a delinked basis but has not yet been released into settlement Microsoft Internet Explorer Page 18 of 27 Delinking User Guide March 2010 9 3 History screen after release into settlement linked The Lloyd s Account Enquiry system w
14. Premium releases received Settled release into SS H into by settlement settlement STFO RBS The table above provides an overview of the processing and settlement process Xchanging aims to process all premium entries within 5 working days Non delinked items are settled 3 working days after they have been processed The earliest that a de linked premium can be settled is 4 working days after processing The one day delay is due to the fact that the entry has to be added to the delinking suspense database before the broker is able to release the entry into settlement However brokers should in most cases be able to submit delinked entries well in advance of the settlement due date which means that this potential delay should not create any problems Days Working days Page 26 of 27 Delinking User Guide March 2010 Appendix C Delinked Signings Advice File DL5080 Data Content The Broker Delinked Signings Advice DL5080 provides brokers with details of delinked entries that were processed by Xchanging on the previous working day Details of both Lloyd s and company market entries are provided and the file also includes both paper and electronic submissions The following business data is supplied to brokers within the Delinked Signings Advice File Broker Code Bureau ID IL for ILU LL for Lloyd s and LR for LIRMA Bureau Signing Reference and Date Unique Marke
15. TACT 12 FOR SETTLEMENT RELEASED SIGNINGS SORT OPTIONS SORT BY SETTLEMENT DUE DATE OR SORT BY BROKER REFERENCE 1 OR SORT BY BROKER REFERENCE 2 OR SORT BY UMR FI HELP F3 QUIT F12 MENU FI4 CRNCELLED SIGNINGS FROM FROM FROM FROM B Page 9 of 27 LLOYDS 25 82 10 11 52 42 1 Sess 1 10 133 30 250 XDEF0364 24176 7 4 Delinking User Guide March 2010 Screen 2 list items pending This screen lists the items selected by the broker The screen is scrollable left right and up down using F keys as shown Any number of items may be selected from this screen at one time To do this the user should enter an S into the select field on the left side of the screen next to the item To de select an item that was chosen in error enter a space into the select field Not all items will have a select field appearing next to them Where items have been grouped by Xchanging e g where multiple premiums must be paid at the same time only the first item in the group will be able to be selected Selection of that item will cause all of the other items in the group to be automatically selected by the system at the same time When all selections have been made the user can press F5 to display further details of the transactions selected Refer to section 10 2 for further information on grouping W 1 LPC flame SEIN AAT IPH111M 6181 FISLOH
16. TRLMENT DETRILS SETTLEMENT TYPE CURRENCY AMOUNT GBP 25 00 GBP 25 00 1 Sess i 10 133 30 250 XDEF0364 15 of 27 8 6 Delinking User Guide March 2010 Cancelled signings Any signings which have been cancelled can be viewed using the F14 Key shift key F2 Cancelled and cancellation signings will be displayed on the List of Items Pending screen for one week after the date of the cancellation entry They will then be displayed on the cancelled signings screen in the order of the selections W 1 LPC flame De dk Tronder Forks Ostos Tods Yew Window Help AAS nens 27 112 0181 FISLOH IzPp 25 02 10 12 05 46 IPC CANCELLED SIGNINGS BROKER 0942 ENTRY ORIG PAY REL MKT SIGNING REF BKR REF 1 5 0 0 TYPE CURR AMOUNT DUE TYPE IND _ IL PMH878889852318 TEST84 14 02 2008 RPM GBP 22500 80 IL 09062310 TESTE4 14 82 2888 RPM USD 45000 BO IL PMHO70009072310 TESTE4 14 88 2888 RPM CAD 450 00 _ LR 0710230000105 TESTO4 14 82 2888 APM GBP 22508 0A LR 0710230000113 TESTO4 14 82 2888 APM USD 45000 88 LR 8718238888121 TESTO4 14 82 2088 APM CAD 458 B8 IL PMH878818881411 86 14 02 2008 NPM GBP 2250 86 LR 0711140000060 86 14 82 2888 NPM GBP 2250 BB IL PMHO80000041001 XOLCRNCEI 14 82 2888 RPM GBP 22508 BB LR 0891100000026 XOLCRNCOI 14 82 8888 RPM GBP 22508 80 IL PMRH88088861881 XOLCRNCH2 14 82 2008 RPM GBP 4500 BA LR 0801100000059 XOLCANCO3 14 02 2008 RPM USD
17. ation dates Delinked transactions that are released by the broker up to the end of the settlement due date will be regarded as on time The interactive trigger facility is normally available for brokers to use until 7pm every working day Brokers who use the RESETT message to release items into settlement should note that these messages need to be delivered to Xchanging before 6pm in order to ensure that the entries are released into settlement on that day Late signings As mentioned in section 5 1 it is important for brokers to submit delinked premium entries to Xchanging as early as possible However there may be circumstances where it is not possible to submit the documentation at an early stage and where the client has not paid the premium on time There is still value in submitting these transactions as delinked entries as insurers will be provided with signed line and premium related data ahead of the premium being settled Extended terms of trade There may be occasions where a premium has not been paid and the broker requests that the Slip Leader extends the SDD so that the item is not judged to be signed late If this occurs the broker should produce an endorsement for the required insurer s to agree Once it is agreed it should be submitted to Xchanging via the IMR with a work order type of Correction The work package should also include a correction request form The broker should also email the required mailbox at Xchang
18. by brokers will be removed from the suspense database at the end of the day or at the end of the effective date if entered There will be no further processing Brokers interested in implementing the RESETT message should contact ACORD www acord org Insurers who wish to receive test messages should also contact the Customer amp User Support Department via the Xchanging Service Centre tel 0870 380 0830 or e mail servicecentre xchanging com Contact information Brokers who need to contact Xchanging in order to request the release of a delinked entry are asked to contact the Enquire help desk in the first instance and provide details of the type of entry and class of business involved tel 01634 887899 or e mail enquire xchanging com Page 24 of 27 Delinking User Guide March 2010 Appendix A Page 25 of 27 Delinking User Guide March 2010 Release Settlement Timetable Appendix B XCHANGING Lloyd s Settlement amp Trust Fund Operations LIPS Royal Bank of Scotland Day 1 Days 2 to 5 max Overnight Day 6 Day 7 Day 8 Day 9 Batch Processing Cash Entry Presented to XIS Entry processed by Xchanging Transaction Data Transaction added to the received Settled main signing by and STFO RBS settlement systems Delinked Presented to XIS Entry processed by Xchanging Transaction Broker Premium added to able to processing Suspense release Database Delinked Broker Data Transaction
19. cellation and replacement will be necessary and a request for correction should be submitted to premium corrections xchanging com Premium payment warranties Transactions which are subject to a premium warranty will be flagged by Xchanging when the delinked premium entry is processed Brokers will be able to release these items into settlement up to the end of the warranty period However once the premium warranty date has expired it will be necessary for the broker to re submit the item to Xchanging for release Evidence of the insurer s agreement to the extension of the premium warranty will be required refer to section 6 3 Sometimes insurers may apply a premium payment warranty which has a different effective date to the settlement due date Where this happens the premium cannot be released by the broker even prior to the premium payment warranty effective date Brokers may manage this issue by including the following words under the Bureau Arrangements heading in the Subscription Agreement section of the Market Reform Contract In the event that a premium payment warranty applies which has a different effective date to the settlement due date Xchanging are hereby authorised to amend the settlement due date to match the premium Page 20 of 27 10 4 10 5 10 6 10 7 Delinking User Guide March 2010 payment warranty This agreement shall be binding on all bureau insurers Late payment reporting and present
20. delays Submitting premium entries to Xchanging on a delinked basis can provide both brokers and insurers with the following benefits e Insurers can be provided with details of their signed lines and accounting information at an early stage within the contract certainty target of 30 days after inception of the contract e Queries can be resolved at an early stage meaning that settlement of premium monies is not delayed e Brokers can control when the entries are released into settlement thus enabling earlier payment of premium to insurers Client insurer settlement can be synchronised Brokers receive fewer requests for information from insurers e Signed policies and wordings can be issued to clients at an earlier stage in the process Improved credit control e An on line enquiry system is available that provides brokers and company market insurers with a summary of premiums waiting to be settled Lloyd s insurers can review details of de linked signings via the Lloyd s Account Enquiry system refer to section 9 Companies in run off can opt to settle their business on a weekly monthly or direct settlement basis Page 3 of 27 4 2 4 3 Delinking User Guide March 2010 Scope of delinking Mandatory usage The London Market Group LMG has agreed that delinking should be used for all original and additional premiums for direct insurance facultative reinsurance and excess of loss reinsurance unless they are s
21. entries that have been processed on the previous working day Alternatively brokers can elect to receive this information via a CSV file Details of delinked signings that were processed on the previous working day are provided within report DL5080 Delinked Signings Advice Details of the information that is supplied within this report can be found in Appendix C Brokers who wish to register to receive either the IPCBSM message or the CSV file should contact the Xchanging Service Centre tel 0870 380 0830 or email servicecentre xchanging com Testing Brokers who wish to submit some test entries and receive test messages should contact the Customer amp User Support Department via the Xchanging Service Centre tel 0870 380 0830 or email servicecentre xchanging com LPAN s for the test cases must be clearly marked IPC DELINKED and TEST TRANSACTION Test documentation will not be subject to the normal Xchanging technical checks Transaction data will be entered as presented with dummy values being added by Xchanging in respect of any missing information At the end of each day completed test cases will be given dummy signing numbers An e mail will be returned to the broker contact to inform them of the signing numbers Signings will appear on the suspense database the next day within the MAT environment where they will be available to brokers by means of the IPC RELEASE FOR SETTLEMENT function Items that are released
22. ettlement Brokers can release items into settlement as soon as their client has paid the premium Both Lloyd s and company market items are stored together on the suspense database that is mentioned above At the end of each working day all items that have been released for settlement are removed from the suspense file and are processed through central accounting in the usual manner A more detailed explanation of this process can be found in Appendix B There are three options available to brokers as to how entries can be released into settlement and details of these options are provided below Interactive trigger Brokers can utilise an on line interactive function to release premiums into settlement This function named IPC RELEASE FOR SETTLEMENT can be accessed via the BUREAU GENERAL FACILITIES menu within the LPC mainframe enquiry system Brokers can release both Lloyd s and company market entries into settlement via this system Details of the screens can be found within section 7 of this document Access to the function is controlled by Xchanging s standard on line security system Two levels of access are available e Enquiry Only The IPC ITEMS AWAITING SETTLEMENT enquiry function must be given to all users who need access for enquiry or for update release e Enquiry and Update Release The IPC UPDATE RELEASE function must additionally be given to any users who need to be able to update and release transactions into
23. f scope The following transaction types are currently outside the scope of delinking e Proportional Treaty Statements Xchanging system constraints currently prevent proportional treaty accounts from being processed on a delinked basis e Nil Premium Entries Entries that do not involve the actual settlement of premium monies via Xchanging do not need to be submitted as delinked transactions Examples include FDO signings nil premium adjustments and paid by cheque items e Transactions Requiring Simultaneous Settlement Both insurers and brokers sometimes require additional premiums to be settled simultaneously with claims or return premiums Although this situation arises fairly frequently on business placed via binding authorities and bulking line slips simultaneous settlement is not limited to these types of contract and can be requested on any type of business These entries should not be submitted on a delinked basis as Xchanging is instructed to ensure that the additional premiums are released into settlement at the same time as the claim or return premium entry in these circumstances Page 4 of 27 5 2 Delinking User Guide March 2010 e Reinstatement Premiums Reinstatement premiums on excess of loss reinsurance contracts should not be delinked This includes entries which do not require simultaneous settlement with claims as the claim entry will have already been settled in these circumstances and the additiona
24. g lines Re insurers agree that the broker must group multiple premiums for this contract to ensure that they are settled simultaneously Notwithstanding the absence of such a provision brokers may nonetheless request grouped processing by instructing Xchanging accordingly It will no longer be necessary to mark LPAN s as DO NOT GROUP where ungrouped settlement is required However whenever grouped settlement is required for transactions received by Xchanging on or after 1 April 2010 brokers must clearly mark affected LPAN s with GROUPED or PLEASE GROUP Further information relating to the change of default from grouped to Ungrouped and the procedures applicable from the date of the change can be found in Xchanging market communication 2010 038 dated 17 February 2010 Where grouped entries appear on the List Screen the broker will only be able to select the first entry within the group Once this entry is selected the dependent items will also be presented and the system will ensure that all of these items are released together In the event of items being incorrectly processed as grouped entries requests for items to be ungrouped should be submitted to the Customer amp User Support Department via the Xchanging Service Centre tel 0870 380 0830 or email servicecentre xchanging com Where the reverse applies and ungrouped entries need to be amended to grouped can
25. gible on each LPAN f the documentation is not clearly marked as IPC Delinked the transaction will be treated as a cash signing and will be included in the next settlement run An example IPC Delinked stamp can be found in Appendix A of this document For transactions received by Xchanging on or after 1 April 2010 brokers must ensure that where grouped settlement is required by either insurers or the broker the affected LPAN s are clearly marked with the word GROUPED further details of all procedures are provided within section 10 2 Although many brokers refer to the submission of delinked accounts within the Subscription Agreement section of their Market Reform Contract MRC it is not necessary for delinking to be specifically mentioned within the MRC in order to allow brokers to submit closings on a delinked basis Processing at Xchanging Xchanging will check and process the closing and will flag the item as being delinked Any technical accounting queries will be resolved at this stage thus ensuring that there is no delay to the settlement of the premium Xchanging will process the delinked transaction but will withhold the item from settlement A bureau signing number and date will be allocated to the transaction at this stage If the premium has been submitted on paper then the signing number and date will be transcribed onto the paper MRC or in the case of additional and return premium entries on the Market Reform Cont
26. ich they are to be presented e The broker number must be entered This will be pre set by the system but can be changed if the broker s organisation operates more than one broker number e Users must indicate the market s for which they want to see transactions Enter a Y next to any or all of the bureau identifiers shown LIRMA ILU and or Lloyd s e optional settlement currency code can be entered to restrict the search If nothing is entered in this field all settlement currencies will be included e broker contact name can be entered to limit the search to those entries where that name was recorded on the LPAN This is optional e Released signings N is entered then only transactions not yet marked for release will be selected If Y is entered then only items already marked for release but still on the suspense file will be selected If nothing is entered then all transactions will be selected Sort options Users should enter Y in one of the options to determine the order in which they want the selected transactions to be listed The sequence options are Settlement Due Date Broker Reference 1 Broker Reference 2 or Unique Market Reference Page 8 of 27 Delinking User Guide March 2010 W 1 LPC flame File Edt Transfer Fonts Options Tools View Window Help axes Bw X G dg rmm IPH11GM 8181 FISLOH RELEASE SELECTION OPTIONS BROKER BUREAU LIRMA E ILU SETT CURRENCY BROKER CON
27. ill display the following information for delinked entries once they have been released into settlement Xchanging next key sall sect mkt tal stmt fal cor ad hoc Slip Broker Expand fm UMR B4000ANN SCTNOL TA PM B FA PM E FA PM 4000 UMR Account Reference NEW NEW 21401 24 10 2006 NEW 21401 24 10 2006 LNK PD GBP GBP GBP B4000ANNIE2 Treaty No Policy Holder Endorsement Description 01 01 2006 SCRIPT NO Premium Premium 10 Special processing arrangements and additional information 10 1 Evidence of cover policies and wordings Xchanging is able to check and sign broker produced policies wordings or prepare Lloyd s policies that are within the scope of the Policy Preparation Service PPS as soon as de linked premiums are processed for the contract 10 2 Grouped items partial payment of premiums For transactions received by Xchanging prior to 1 April 2010 where contracts that attract multiple original premiums are processed on a delinked basis the entries are grouped by Xchanging to ensure that they are released into settlement simultaneously Where brokers want to pay these premiums to insurers as and when they are received e g where the contract covers multiple clients or provides coverage for the client s operations in multiple locations the broker will need to obtain insurer s agreement to these premiums being released into settlement at different times and it is
28. ing by no later than 1pm on the day that the extension is required so that the Xchanging technician may update the SDD that has been recorded against the premium entry It is not critical that the SDD that has been recorded is amended before the item is released into settlement As long as the amendment is made within the same calendar month then the broker s performance as measured by the Late Signing Report will not be adversely affected Details of how to contact Xchanging can be found in Section 13 of this document Deferred premium entries Where the deferred premium scheme is used instalments on entries that are processed on a delinked basis are locked into settlement when the broker releases the first instalment into settlement Brokers who wish to settle the first instalment of a deferred premium entry to insurers ahead of the settlement due date should show CASH against the first premium instalment in box 30 on the LPAN Xchanging will then enable the broker to release the first instalment into settlement earlier than the settlement due date i e if funds are received from the client ahead of the SDD Alternatively brokers can process second and subsequent deferred premium instalments via additional premium entries Brokers can submit these as delinked entries at the same time as the original premium is presented for the first deferred instalment or they can be submitted individually closer to the due dates for the deferred ins
29. l premium should therefore be paid immediately e Lloyd s Premium Reserve Accounts Lloyd s premium entries which include reserve premiums cannot be delinked This is due to the non standard processing procedures that have to be followed on this type of transaction In the event of brokers submitting any of the above mentioned transaction types as delinked entries Xchanging will process these submissions on a non delinked basis Process explanation The submission of delinked entries Once the broker has placed the risk and signed down the market the London Premium Advice Note s LPAN s and other closing documentation should be submitted to Xchanging It is important for brokers to submit documentation to Xchanging as soon as possible The Premium Payment Improvements Working Group PPIWG report recommends that the delinked account should be submitted to Xchanging within 20 days of inception or in the case of late placements 20 days after placing is complete This will allow Xchanging to perform the necessary accounting checks deal with any queries and process the transactions well before the items are due to be released into settlement i e on or before the SDD Brokers should note that if they submit delinked entries close to the SDD then subsequent processing queries may lead to the entries being categorised as being late payments Each transaction must be clearly marked as IPC Delinked This must be clearly le
30. mme for its contribution towards achieving contract certainty This User Guide provides brokers with details of procedures that should be adopted when submitting delinked entries to Xchanging and provides insurers with details of how they can take advantage of the earlier availability of signed line and accounting data The Guide should be read in conjunction with the other delinking and contract certainty documentation which is available for download from the market reform website www londonmarketgroup co uk Contract certainty A key requirement of the contract certainty reform programme is that insurers receive confirmation of their signed line promptly Use of delinking enables brokers to meet this requirement i e by submitting delinked premium entries to Xchanging at an early stage and by the subsequent earlier distribution of signed line information to insurers via the insurer signing messages and e mailed reports Benefits of delinking Non delinked entries are settled three working days after they have been processed by Xchanging This means that brokers normally wait until they have received premium funds from the client before they submit the documentation to Xchanging Xchanging aims to process all electronic premium entries in an average of 3 working days but in the event of there being queries raised on the transaction processing and hence settlement of the premium can be further delayed Use of delinking can eliminate these
31. ntries will also be included within the IPCBSM message refer to section 11 Both the cancellation and the signing being cancelled will then be removed from the suspense database Neither of the entries will be processed into settlement Cancellation entries should be submitted to Xchanging in the following circumstances e Where the contract is not taken up e Where the delinked entry contains errors and needs to be replaced e When agreed contract changes result in the need for cancellation and replacement entries to be processed e When a duplicate entry has been submitted processed e When areplacement entry has already been processed It is important for brokers to remember to mark the cancellation entries as being delinked submissions Processing In advance early signings It is possible to process delinked entries in the year before the contract actually incepts i e an original premium for a 2009 contract can be processed and signed as a delinked entry in 2008 However it is important to note that validation within Xchanging s data entry systems prevent Lloyd s transactions from being settled in the year before the contract incepts Company market transactions can be settled in the previous year assuming that the client has paid the premium at this early stage Monitoring payment of premium Insurers should note that although Xchanging provides a limited Credit Control service on company market business whereby e
32. ontact Enquire tel 01634 887899 or e mail enquire xchanging com who will contact the appropriate team leader at Xchanging to make them aware that they would like an item to be released into settlement Confirmation of this request and details of the signing number for the premium entry involved should then be e mailed or faxed to Enquire Details of such requests should be submitted to Xchanging before 1pm on the day when release is required Where a premium warranty has been breached Xchanging will require evidence of the insurer s agreement to an extension of the warranty period Where a rate of exchange is outside of the tolerance referred to above the broker will need to provide evidence as to why the rate of exchange that they have used should apply Broker delinking trigger screens Release for settlement As mentioned above brokers need to access the IPC RELEASE FOR SETTLEMENT function Users will then be presented with an options screen that allows them to enter their chosen selection and sort criteria A list of items matching the selection criteria entered will then be presented in the specified sequence When all selections have been made each item will be presented in turn For each item additional screens will be displayed showing further details of the transaction If the user has been given update authority then it will be possible to update some of the data such as the exchange rate and to release the item into settlement
33. pecified as either optional or out of scope in this document However there are some extenuating circumstances where delinking may not be used Examples include e Prompt payment warranties where delinking could mean the due date is missed e Premium payment warranties where the 20 day target for the submission of the delinked account was missed and the use of delinking would result in a warranty breach e Transactions with terms of trade less than 30 days e A late placement where the date the last line is written is too close to the SDD to allow the premium to be delinked and then released on time e Where the premium has already been paid to the broker prior to the submission of the delinked account Optional usage Use of delinking is optional for the following transactions Binding authority bordereaux amp bulking lineslips Using delinking on these transactions may delay settlement to insurers rather than speed it up Once a delinked account has been processed the broker would need to wait until the multiple premiums which form the transaction have been paid before the transaction could be released into settlement The alternative approach is to process such premiums on a pay as paid basis as a cash transaction Return premiums Delinking a return premium will also delay the return of funds to the insured However some brokers may choose to delink these transactions so they have a common approach to all premium transactions Out o
34. ract Endorsement MRCE and returned to the broker Paper MRC MRCE will also be marked with the word Delinked For transactions submitted to Xchanging electronically via the Insurers Market Repository IMR the signing number and date will be added to Page 5 of 27 5 3 5 4 6 1 Delinking User Guide March 2010 the IMR and also advised via the signing messages Refer to section 11 for more details Details of both Lloyd s and company market delinked premium signings are added to a suspense database known as the Interactive Settlement System i e rather than being submitted to the main signing and settlement systems Settlement of these premium signings will not occur until this is triggered by the broker Signing number and date allocation Signing numbers and dates are allocated to delinked premium entries when they are processed and added to the suspense database It is important to note that the allocation of a signing number and date at this stage does not denote that any monies will be settled Details of signing information that is provided to insurers and brokers within the daily signing messages can be found in section 11 Additional premiums Additional premiums can be submitted and processed as delinked entries before the original premium has been released into settlement However it is not possible to release a delinked AP into settlement before the original premium has been settled Releasing premiums into s
35. rch 2010 Screen 2 List of items pending This screen displays all the items selected by the user The screen is scrollable left right and up down using F keys as shown To select an item from the list enter an S in the field next to the record on the list screen and press ENTER W 1 LPC flame fe Cd Foks Ostins Toos Wew Window Heb exmume POS AAS Tug rnm eg IPB311M 0185 FISLOH 25 82 18 12 02 33 IPC DE LINKED ENTRIES AWAITING SETTLEMENT MORE LIST OF ITEMS PENDING COMPANY SIGNED S D D ENTRY ORIG YOUR SHRRE CODE REFERENCE LINE TYPE CURR AMOUNT _ X1111 TEST 50 0000000 81 81 2818 NPM GBP 50 00 X1111 ABCD 50 0000000 02 01 2010 AAP GBP 3750 8B _ X11111 IPT82 100 0000000 04 01 2010 NPM GBP 988 00 1111 IPT e 100 0000600 84 81 2818 NPM BMD 67500 X1111 IPTB 100 0000008 84 81 2818 NPM MYR 45000 88 X1111 TEST 100 0000000 21 81 2818 NPM SEK 30000 00 X1111 TEST 100 0000000 21 01 2010 NPM GBP 25000 00 1111 TEST 50 0080000 21 81 2010 NPM CAD 31588 86 _ X1111 TEST 50 9900000 05 82 2818 GBP SB BB _ X1111 50 0000000 26 82 2818 GBP 2258 80 X1111 NORMRNT 58 0088800 26 02 2818 CAD 45 BB X1111 NORMRN 50 0000000 26 82 2818 APM USD 2258 88 _ 1111 75 0000000 81 84 2818 NRP DOP 758 88 1111 IPT83 37 800000 81 84 2818 NPM CUP 3330 08 1111 BHREB3 75 0000000 81 84 2018 NRP DOP 6888 80 FI HELP F3 QUIT F7 BRCK F
36. rocessed by Xchanging prior to premium payment The USM includes the signing number and date the settlement due date and a premium value but no real Actual Payment Dates will be included this will be expressed as APD 99999999 As mentioned previously it is important to note that the allocation of a signing number and date at this stage does not denote that any monies will be settled The Business Category will either be PRD delinked premium or DPD delinked deferred premium When the broker releases the premium for settlement the syndicate will receive USM versions 2 amp 3 assuming no corrections indicating the payment will be made The Actual Payment Date will be amended to the date the item will be settled and the Business Category will also be updated to either PRM premium or DPM deferred premium Page 23 of 27 Delinking User Guide March 2010 11 3 2 USM opted out 12 13 If a syndicate opts out then they will only be advised of delinked transactions in the USM when they have been settled The Actual Payment Date will contain the settlement date and Business Category will be either PRM premium or DPM deferred premium Broker messages Details of delinked signings only appear in the standard Broker Signing Message BSM when the entry is released into settlement However brokers now have the option of taking the new IPCBSM message This EDI message provides brokers with details of delinked
37. t Reference Broker Reference 1 Broker Reference 2 Transaction Entry Type Code Original Currency Bureau Net Premium in Original Currency Underwriter Due Date Payment terms indicator Page 27 of 27
38. talments However brokers should note that they need to obtain insurer s agreement to process and settle deferred premium instalments in this manner and it is suggested that the following words should be included under the Bureau Arrangements heading in the Subscription Agreement section of the Market Reform Contract Page 21 of 27 10 8 10 9 10 10 10 11 10 12 10 13 Delinking User Guide March 2010 Insurers hereby agree that any deferred premiums payable under this contract will be processed as delinked additional premium entries Declaration processing Declarations settled on a paid bordereau basis or as Additional Premium s off an FDO may be processed as delinked transactions as long they are all to be settled at the same time Where such APs are delinked insurers have requested that any RPs for the same periodic accounts should also be delinked Contract changes Details of any contract changes that affect a delinked premium should wherever possible be advised to Xchanging prior to the entry being settled via the submission of a copy of an agreed MRCE This will mean that insurers will receive the revised risk transaction details via the normal daily signings messages when the entry is released into settlement Cancellations Cancellation of a delinked signing will cause a cancelling entry to be signed and advised to those insurers who receive details of delinked entries Details of such e
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