market bulletin
Title

Coverholder Reporting Standards

PurposeTo advise coverholders and TPAs of changes to data standards.

FromPeter Montanaro, Head of Delegated Authorities
Performance Management Directorate
Tel: +44 (0)20 7327 5971, email: peter.montanaro@lloyds.com

Date

7 August 2015

Ref: Y4919

Related links

Lloyd’s has now published its updated (2015) version of the Coverholder ReportingStandards. These have been updated to enable coverholders to provide relevant data to
Lloyd’s managing agents so that managing agents can meet the requirements of Solvency
II, Pillar 3 requirements and also, where applicable, Lloyd’s conduct requirements.
In addition, the LMA has published a performance management information spreadsheet.
This is designed to be a tool to enable TPAs to provide minimum claims performance
information to managing agents that have appointed them.
Both the updated Coverholder Reporting Standards and the TPA performance management
information spreadsheet are available on Lloyd’s website using this link.
Whilst the use of these tools are not mandated, Lloyd’s would encourage their use as being
an effective manner to ensure consistent data is being collected from distributors.
New Coverholder Reporting Standards
The previous version of the Coverholder Reporting Standards were published in 2013.
Since then there have been two key developments that impact upon the information thatcoverholders will be required to provide to their managing agents. Accordingly, a newversion of the Coverholder Reporting Standards (2015) has been published following
extensive consultation and having regard to the feedback Lloyd’s received during the recent
UK Coverholder Roadshows.
A new version of the Coverholder Reporting Standards Guide (“the Guide”) as well as
updated Premium and Claims Reporting Templates are now available online using this link.

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Lloyd’s is authorised under the Financial Services and Markets Act 2000

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The changes since the 2013 version are set out in the updated Guide (under “Changes inthe version”). But in summary the changes relate to the following Solvency II, Pillar 3
As part of Solvency II, there are increased reporting requirements which form part of Pillar 3(Supervisory Reporting and Disclosure). These new requirements apply to all insurers
including Lloyd's with effect from 1 January 2016. Lloyd's will collect Solvency II Pillar 3
returns from each syndicate from 2016 in order to be able to comply with this requirement.
Part of the additional reporting requirements relates to data required at individual policy andclaim level. In order to meet these requirements, managing agents will need to be able toaccess data at this level on a 'look through' basis from coverholders and other delegatedauthorities. Accordingly one of the objectives of the new Coverholder Reporting Standards
is to be able to achieve this and going forward the following fields are now mandatory for alltransactions –••Total Gross Premium, sum of instalments in original currency of premium payments(CR0021)
Total sum insured currency (CR0051) and amount (CR0052)

Conduct Management
Lloyd’s Minimum Conduct Standards (MS11) [link] requires managing agents to collect anduse relevant management information from their distributors. These requirements comeinto force as from 1 January 2016.
In addition, in respect of coverholders that underwrite “high product risk products” where the
Lloyd’s Customer is domiciled or registered in the UK or EEA Lloyd’s has mandated several
minimum data fields that managing agents must require those coverholders to report on.
(See Lloyd’s Bulletin Y4847 for further information regarding the detail and application of
those data fields).
Whilst Lloyd’s made clear in that bulletin that the data does not need to be provided in any
single report, the updated Coverholder Reporting Standards have been prepared to meet in
one place all the requirements of Bulletin Y4847.
In respect of premium reporting 6 existing fields have been upgraded to mandatory for highproduct risk products (relating to address, postcode, transaction type, date of transaction,
fees description and fee amount) and 4 new fields have been added relating to reasons forcancellation and which relate to policyholder type that are again mandatory for high productrisk products.
In respect of claims reporting 3 existing fields have been upgraded to mandatory for highproduct risk products and 16 new fields have been added which mainly relate totransactional dates and dates/reasons for denial that are again mandatory for high productrisk products. There are also new values for the claims status field.

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Performance Management Information For TPA OversightDuring the first half of 2015, the LMA (working with Lloyd’s) facilitated a market project onbehalf of the Binding Authority Claims Group (BACG) to deliver a set of minimum claims
performance indicators and reporting by TPAs to the managing agents that have appointedthem.
The output of the Project has been the production of a performance management
information indicators spreadsheet, designed to assist managing agents' oversight of theclaims performance of their TPAs when combined with compliance to Lloyd’s Conduct Risk
Minimum Standards, requirements under Solvency II and of the FCA in respect ofoutsourcing.
Three templates have been produced under the Project; these define the minimum
performance monitoring reporting standards that have been developed to cover TPAs ineach of the following jurisdictions: EEA (which includes UK); Rest of World; and UnitedStates. These templates can be found here.
These indicators are not envisaged to be mandatory. However, where no satisfactory
alternative provisions exist they should be used by managing agents as a minimum androlled out to TPAs as soon as possible to enable them to start providing this management
information by a target date of 1 January 2016.
These performance indicators should also help Managing Agents determine the applicableand appropriate claims service levels in respect of the class and territory of the claims
handled by the TPA.
More details regarding the LMA Project can be found here.
At this stage, the LMA and Lloyd’s are working with LIIBA on how best to apply theseperformance management information indicators to coverholders with claims authority
where no satisfactory alternative provisions exist. This work is underway and the aim is toaddress this within Q3 2015. Further communication follows.
Questions•

Any questions on the 2015 Coverholder Reporting Standards should be addressed
as follows –o General questions
 peter.montanaro@lloyds.com
o Questions relating to Pillar 3 reporting obligations
 paul.appleton@lloyds.com
o Questions relating to conduct risk reporting obligations
 conduct@lloyds.com
o Questions relating to claims reporting obligations
 kevin.moon@lloyds.com
o Questions relating to complaints reporting obligations
 complaints@lloyds.com

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MARKET BULLETIN•

Any questions on the LMA Performance Management Information Spreadsheet For
TPAso Robert Greggo Head of Claimso Lloyd's Market Associationo T: +44 (0)20 7327 8404
o E: robert.gregg@lmalloyds.com

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