From July 2017, Lloyd’s will have the authority to monitor and regulate the data requirements as outlined in version 5 of the Coverholder Reporting Standards. A core set of regulatory, tax, premiums and claims information, the standards are intended to make it easier to work with the Lloyd’s market by creating consistent requests and collection of data from coverholders and TPAs.
In terms of impact on insurers, the mandate should cause minimal changes in procedure. Where additional data collection is required as standard, such as for underwriting, insurers should continue to request and collate further information. Tools such as VIPR’s Active Reports and Intrali offer insurers a solution to collecting, cleansing and standardising data in compliance with the Coverholder Reporting Standards. With the parameters of the mandate yet to be fully finalised, insurers should expect further guidance from Lloyds in July 2017. However, as it currently stands, many insurers still execute their underwriting processes manually, rendering them woefully inefficient, inconsistent and full of errors. Solvency II has re-set the bar when it comes to the data quality that binders are required to submit, with Lloyds announcing that organisations which fail to provide accurate data will be fined. With the inevitable pressure to modernise systems and to make them more transparent, the market is in desperate need of a more straightforward process.
RICHARD BROWN, Director, VIPR
VIPR’s Active Underwriter offers insurers a fast underwriting method, with business instantaneously quoted online within preagreed parameters set by the capacity provider. It accommodates the end-to-end transaction of insurance business, in real-time, across Lloyd’s and international insurance markets and because everything is controlled within the system, it ensures compliance and automatically produces the reports required for Solvency II reporting. Quote & Bind solutions will ensure the insurance industry is ahead of the curve, and, most importantly, able to write more business to boost profitability.