29 th september 2011 coverholder reporting standards lloyd’s and acord
TRANSCRIPT
29th September 2011
coverholder reporting standardsLloyd’s and acord
© Lloyd’s
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 problemCoverholders
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 nameUMR or Agreement NumberReporting periodClass of business, Lloyd’s risk code or binder section Certificate referenceInsured or reinsured name and countryRisk inception and expiry dates or period of coverType of insurance – direct or type of ReinsuranceLocation of risk country
Paid premium transaction information: Transaction type, Original currencyGross premium paid this time Commission % and amountTaxes and levies, Net premium to LondonSettlement currency
© Lloyd’s
Mandatory information - claims
Coverholder nameUMR or Agreement NumberReporting period, Class of business, Lloyd’s risk code or binder section Certificate referenceInsured or reinsured name and country Risk inception and expiry dates or period of coverLocation of loss countryClaim referenceCause of loss,Claim statusRefer to underwriter? Denial?Original currencyPaid this month, previously paid, reserves and total incurred feesPaid 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
Puneet BharalHead of Advisory Services, UK and Europe, ACORD
© ACORD 2011
ACORD Exposure Reporting Standards
September 2011© 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
September 2011© ACORD 2011
Quantifying Exposure – What do we need to know?
• What it is• Where it is• What it’s worth
September 2011© ACORD 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
September 2011© ACORD 2011
Internally, who needs exposure information?
Clients
Management
& IT
Cat
modellersUnderwriters
Reinsurance
placement
Business
planning
Capital
modellers
Data
format
& quality
September 2011© ACORD 2011
Industry Value Chain – the Exposure Dataflow
Original insured
Insurer
Agent MGA
Surplus/specialty
lines broker
Surplus/specialty
lines insurer
Financial Markets
Reinsurancebroker
Reinsurer
Retrcessionairre
Reinsurancebroker
RetrcessionairreRetrocession
airre
Risk Manager
September 2011© ACORD 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
September 2011© ACORD 2011
So what changed?
• Technology• Evolution of demands• Regulation• Large losses
• Andrew• WTC• Katrina• Christchurch• Tohoku
September 2011© ACORD 2011
Data quality – the current environment
September 2011© ACORD 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
September 2011© ACORD 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
September 2011© ACORD 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)
September 2011© ACORD 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
September 2011© ACORD 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
Wednesday, September 24, 2008
Two Blue Hill Plaza3rd FloorPearl River, NY 10965USA+1 845 620 1700
London Underwriting CentreSuite 1/3
3 Minster CourtMincing Lane
London EC3R 7DDUnited Kingdom
+44 (0)20 7617 6400
NEW YORK
OFFICENEW YORK
OFFICE
LONDONOFFICE
LONDONOFFICE