Presentation on theme: "ECF 360 From a Broker, Managing Agent and Xchanging Perspective."— Presentation transcript:
ECF 360 From a Broker, Managing Agent and Xchanging Perspective
Broker Perspective As brokers use many different batch systems the following screenshots are from Interactive CLASS – highlighting ECF related fields and any other fields that will assist the smooth flow of the agreement process. All screens are populated with test data for demo purposes only. It should be best practice to populate all fields with accurate data and to use narrative fields fully. All Brokers should aim for a right first time target.
There are no specific ECF fields on this screen
UMR – This must be the same as the Original Premium / FDO Signing is under, or the result may be a partial file. If incorrect and released to CLASS even if noticed and subsequently corrected there will be duplicate UCR folders created on the IMR and the claim will have to be deleted and recreated under another UCR. BKR CLAIM REF1 Same Ref as used in the Brokers system. for the transaction to ensure matching of BSM Full name and full phone number in case of query SLIP LEAD (CARRIER CODE) The London bureaux leader. Creates ownership of claim in the IMR. Populate with Lloyds Syndicate number, Lirma Stamp or ILU first 6 digits. ECF CLAIM Defaults to Y for Lloyds, N if paper file, T if transition transaction from paper to ECF
There are no specific ECF fields on this screen
Note: Format of Orig Signing = YYYY/MM/DD Number Unsigned risks on Lloyds ECF are Out of Scope
This is not ECF Specific Details should be as full as possible e.g. claims splits, hull / liabs, fees. If re-releasing a transaction to answer a query, add narrative explaining the reason, which will assist carriers
Once released this is the route for a broker to enquire On-line
Adjuster comments are loaded here. Keep these concise as there are limited lines available. Be sure to add full name and contact details. Additional narrative can be added to a document and saved to the IMR. If a broker is re-releasing a transaction to resolve a query, add additional narrative to explain the purpose of the re-release to carriers Broker On-Line view of responses
Use this button to link straight to a claim summary in the repository. This functionality only works if the CLASS user has a repository license. It will save a user having to log in twice and remembering two passwords.
Select to add documents Note – The broker view builds from CLASS. Therefore if the claim is across CLASS markets, this screen shows the Bureau lead of the last transaction released to CLASS. If for any reason a CLASS message is deleted on one version of CLASS but live on another version, the transaction tab will show DEL. The Helpdesk will need to reset the access control for remaining CLASS users to be able to view it.
This must be the date the document was created and is used to build a chronological view in DFV. Always attach documents at transaction number level Click on the + and a selection box opens and will allow you to choose documents to load. Multiple selections are allowed. The further actions below must be performed on all documents therefore you should highlight each in turn. Click create to load
The transaction is now ready for adjusters. Note the difference where the date is not completed on loading.
Managing Agent Perspective
After logging in, this is the first page you will see. It allows you to search the IMR for claims or risks. Its a good idea to always uncheck the Exclude Closed Claims box when searching, as the claim you are looking for may be on a closing transaction and if this check box is ticked it will not include it in your search results.
This is a search which brings back a list of all claims awaiting completion on the IMR for the syndicates which you are authorised to access and for which you have an agreement party role. If the response code is blank in conjunction with a lead role then it requires your action before any other party can work on it. Once you have responded, the response code will be updated and the entry will remain on your Awaiting Action list until all agreement parties have responded. Lloyds claims can only be searched for in this section and results can be filtered using the various fields in the search section.
Once you enter a particular claim this will be the first screen you come to. It allows you to raise an individual or organisational conflict if appropriate. It will take you to the following page if you register a conflict.
If you raise a conflict in error or the conflict no longer exists please contact the XIS helpdesk to have the conflict removed. If you raise an organisational conflict you will need to contact the broker and XCS to advise them of this conflict.
Continued on next page Once past the summary page, the main page to access is the Transaction Summary. This shows the current transaction loaded by the broker. Details of the claim
Continued from previous page Documents in support of the transaction being presented for agreement by the broker The financials If there are no documents in the claims related documents section, do not proceed to agree the claim as it will be rejected by XCS. Likewise if there is no OSND. Click on the blue name of the document to access the document.
If there are no documents on the previous screen do a quick check on the All tab to see if the broker has loaded the documents but neglected to link them to the transaction. If this has happened you can ring the broker and advise them to correct this error. It is also important that the slip and associated documents are loaded to the UMR. You can check this by using the View UMR button. This will take you to The UMR screen.
The UMR screen must hold as a minimum, a copy of the slip with the signing numbers & dates either physically on the copy of the slip or if electronically signed; in this section here. The claims section will show the details of every claim on the IMR relating to this UMR.
Going back to the claims agreement process: you must go through the Market Response screen to get to the agreement page. In this example we are acting as Syndicate 1400 and we have a response code of NAK which equates to not acknowledged. Click on NAK and go through to the Market Response Details Page.
Continued on next page This is the beginning of the response page. Your details will appear in the role section if you are an agreement party to the claim under the appropriate Lloyds Claims Scheme. Everyone must ensure that their full telephone number is completed. Claims Reference 2 is used for examiners initials by some Managing Agents.
Continued on next page Continued from previous page This is the section where you can add additional agreement parties, if required by the Lloyds Claims Scheme.
Continued from previous page This section shows you the financials with an option to flick between your share and 100%. You can also enter any lead underwriter reserves for XCS to include in addition to those being presented by the broker.
This is the section where you register your response to the brokers transaction. The claims scheme section is automatically calculated by the system using the YOA & Risk Code. However please check to see if this is correct as there are some variations. Refer to the LMA for further information and guidelines relating to the Claims Transformation Project.
Triage Category comes next. Please select either standard or complex in accordance with the guidance notes provided by the LMA.
Now you have to select the appropriate response button. If the documents are missing, there is no OSND or the claim is on the wrong YOA; select Query /Return and clearly explain your reason for this response in the Public Comments section so that the broker can correct the error.
If youre happy with the presentation, then respond Seen/action (if there is a payment involved then your response would be agree pay) Write your comments as you would do on a paper file and always ensure that you include your full name, your organisation and the date on every type of response, as the broker will not know who has responded without this information. Likewise the broker will not be able to advise you when theyve corrected a claim that youve query returned, without this information.
The private comments section can only be seen by Insurers & XCS. It is prudent that should you wish to give any instructions to XCS such as adding an additional reserve in this example, that you clearly document your instructions in this section. Both of these sections are limited in size and it is recommended that if you have extensive comments to make, that you put these in a word document, load them to the relevant transaction in ECF and refer to them in the public comments section. Once youve completed this section you will enter your password again and click the submit button.
This page will then appear confirming your response
If you now go back to the Market Response Summary you will see that the NAK has now changed to S/A seen action.
If you have a transaction which is above your authority levels within your organisation, a useful feature is the Send Link function, which will generate an email on your computer containing a hyperlink to the claim in ECF. This automatically generated template can be overtyped and amended. It can also be used to refer matters to brokers, co- insurers & management if the item is above your authority limit; thus saving time. (see slide 39 for example.) Another feature is cross market comments which allows you to view the comments of every insurer that has made a response to a transaction after November 2008 regardless of the bureau. (see slide 40 and 41 for examples)
Comments are split between public and private
LIRMA private comments can only be seen by the organisation that created them, the private comments of all other bureaus can be seen by all insurers.
At the top right hand side of the screen there is a feature entitled Quick Links which works like a favourites & history section on an Internet browser. It is particularly useful when recalling UCRs
There will be changes coming to the system to allow the favourites to be managed and sorted
As soon as the final Lloyds agreement party has responded, the transaction will arrive on the XCS Awaiting Action list. XCS could use a search but in reality they do not do this. They use XCS Workflow instead, which will alert them to the fact that the transaction has arrived.
Continued on next page The first task is to review the presentation. At this stage, XCS will not yet respond to the transaction. Screens seen by XCS are much the same as those seen by a Managing Agent. All fields are reviewed but those highlighted may cause problems. Broker References These can change from one transaction to another. When a settlement is involved, XCS will use these as the settlement references. These go out to the broker on the Broker Signing Message (BSM) to assist in reconciliation. Broker Narrative Free format with varied uses including: Indemnity / Fee split Reason for re-releasing AP signing when FDO used. Slip Order This should be the brokers order and not Lloyds share. (These may be the same of course.) Policy Period For binder individual UCR, this should be the policy period for the individual risk and not the binder. Limits and Excesses Loss Date
Continued from previous page It is important to stress that this is a dummy claim performed in the Training Environment. In the real world XCS could not process a USD settlement with a GBP signing. As no settlement is involved in this example, we can advise a USD reserve. OSND This must be present on this screen. It is not acceptable to just have it on the UMR page. It is needed here in order to successfully process on XCS CLASS Claim Documents Required In this example the hurricane hit 2 states. XCS will need the split of recommended reserve.
07:00 Create claims information Amend claims information End of Working Day Overnight Run Incorrect information can be reset up to 7pm when system goes down Syndicate Claims Message (SCM) (Every syndicate / every claim) If settlement involved Broker Signing Message (BSM) Underwriter Signing Message (USM) Once reviewed in ECF the next thing for XCS to do is to put it into XCS CLASS. At this stage, no response has yet been made in ECF. XCS CLASS is available from 7am to 7pm. It is important to appreciate that if details presented cannot be put into XCS CLASS, then Managing Agent books will be out of date as no SCM can be released and any settlement amounts cannot be collected. Only once successfully released into the overnight run are messages created. XCS Claims information is considered to be the master claims database, so XCS also supply extra information which will allow Lloyds to extract reports and Lloyds regulatory requirements to be satisfied
The System has lots of differing functionality for the various scenarios presented. This demo illustrates just one technique and highlights just a sample of the fields completed by XCS. Create Claim – This is used for first notifications, i.e. transaction / sequence 1. Find Claim – This is used to locate an existing claim when an update is required, i.e. transaction / sequence > 1 As the UCR presented is a first advice, we will follow the Create Claim route
XCS supply OSND, as shown on the transaction summary in ECF Original signing, as supplied by the broker. This must never be left blank as it would be rejected as an out of scope unsigned risk. If a FDO signing is used, XCS can additionally insert the AP SND, to ensure the correct regulatory codes are used. Broker should advise the AP signing using the Broker Narrative
XCS CLASS now shows a list of all claims that already exist for the supplied OSND. Adjusters will check the list to ensure the claim is not being duplicated.
Indication as to whether or not a settlement is to be processed Claim Transaction Creation Process This is screen 1 of what is termed the high-level claims information. There are 5 high-level screens to complete. It is Important to repeat that a GBP signing and USD would not allowed if this were a real settlement! For paper presentations, XCS would complete this. For electronic, the details are copied or imported from those just reviewed using ECF. Original Currency ECF Classification This is an example of field used to extract a report for Lloyds. It is used predominantly to report on paper presentations. The reason supplied indicates why a paper file was presented instead of ECF. E.g. Out of scope – Multi-OSND.
As this claim was presented using ECF, XCS will copy the details using the Copy from UCR function. This ensures the XCS CLASS details are hooked up to the UCR. This also enables XCS to search using the brokers UCR.
You will now be asked which UCR should be copied to the XCS CLASS entry. The OSND supplied at the time the creation was initiated must be present on this UCR. If the OSND is not present on the UCR, then: Create will fail No details can be copied No SCM can be created and released No money can be moved and no settlement is paid
Back to screen 1 of the 5 high-level screens. Fields now reflect copied details. Original currency set to USD (Not really allowed with GBP signing) Advice reflects no settlement involved ECF Class shows that entry is ECF from first advice ECF Claim tick box – provides visibility that this entry relates to a UCR Continue to screen 2 of the 5 high-level screens.
Screen 2 of the 5 high-level screens.- Policy Details Fields again reflect copied details. (Note the Peer Review field) Used to record the service being applied – CAF=Yes/No CAF=No signals XCS performing a Technical Processing (TP) role XCS will need a slip The slip identifies the agreement parties required and is the only definitive place this information can be found No slip will be a straight reject by XCS Managing Agents must not respond using a slip they have on their own repository The slip must be available on the UMR page on the IMR Continue to screen 3 of the 5 high-level screens.
Screen 3 of the 5 high-level screens.- Market Details Fields again reflect copied details. Lines are never inserted or deleted Split markets / commutations / etc are out of scope Lack of data integrity as information would not coincide Only references can be changed Continue to screen 4 of the 5 high-level screens.
Screen 4 of the 5 high-level screens.- Claim Details (Page 1) Fields again reflect copied details. UCR is stored here Ensures this entry in XCS CLASS is linked to the broker UCR in ECF Continue to Page 2 of the Claim Details
Second page of Claim Details Fields again reflect copied details. CAT Code is the Lloyds Catastrophe Code which allows Lloyds to see the financials involved for a particular catastrophe, e.g. Hurricane Katrina. PCS Cat Code is used when US insured property loss is valued > $25 million Both Cat Codes could be supplied by the lead in ECF Cause Code is another Lloyds requirement and is used to report on claims trends. Codes are generic e.g. Fire Continue to screen 5 of the 5 high-level screens.
Screen 5 of the 5 high-level screens.- Financial Details Note settlement fields are not available – the system knows there is no settlement involved. Fields again reflect copied details. Broker TR is supplied to cross reference to the UCR/TR that was presented O/S Total -Always uses original currency -Has copied broker recommended reserve -In this example the $10,000 fee reserve requested by the lead will need to be added. The adjusted figure will be $1,010,000 You will always need to supply the settlement currency on first advice, this is used to generate the COR (Claims Office Reference) Non-marine and Aviation references will begin with even number which reflects the settlement currency. Marine references use an odd number at the end. Examples N 20010/410210 or M 09/02 00001 1 1 or 2 means pure GBP entry, 3 or 4 means convertible entry, 5 or 6 a pure USD entry and 7 or 8 a pure CAD entry Pure means original and settlement currency are the same All 5 high-level screens have now been completed. These are the details used to build this and future messages. Continue to the SCM.
Need 1 SCM for each State Regulatory Requirements. Lloyds obtain licences from insurance regulators around the world. This allows Lloyds underwriters to write international business in London on an even playing field with local insurers. Regulators monitor business coming out of their country for both premiums and claims. Uses a hard coded FIL code and each applicable FIL code needs a separate SND Achieved by breaking down the overall risk into several CORs, i.e. several SCMs 1 high-level XCR can comprise any number of low-level CORs High-level claim details are now used to populate low-level SCM details. SCM contains additional details that contain regulatory requirements. Each SCM is identified by a COR. You will need a separate breakdown for each US State although they might have the same FIL/SND The SCM screen is split into 3 sections – In this example they are shown separately for readability.
Regulatory Requirements for Louisiana Policy Details for the state of Louisiana. FIL Code / Trust Fund Code / State Code are a regulatory requirement. FIL Codes are used by insurance regulators. They are found on UMR screen Some countries only look at last digit to determine the type of business 1 = Direct 2 = Fac RI 3 = XL 4 = Prop Treaty 5 = Throwaway Others want much more Where the broker is domiciled Type of tax payable XCS need to ensure correct codes are used.
Claim Details for Louisiana Can be: Standard TP Standard CAF Complex CAF Technical Accounting Threshold TP Service Type Identifies the 2009 Service Type derived using the appropriate triage rules. This is a mandatory field Claim details for state of Louisiana.
Financial Breakdown for Louisiana Broker The broker has loaded the document showing the financial split for Louisiana and Texas. If this document is not there it could result in a rejection. The document stated the $1,000,000 was split $250,000 for Louisiana and $750,000 for Texas. Total amounts are now split into Indemnity, fees and expenses. Settlement Refs are mandatory when there is a settlement involved. XCS would copy these from the Transaction Summary. Managing Agent The Managing Agent requested an additional $10,000 reserve for fees. No split information has yet been provided. The assumption is therefore $5,000 for Louisiana and $5,000 for Texas.
Part of the overall loss is in the form of one breakdown for the state of Louisiana. Now we need a new breakdown for the state of Texas.
Regulatory Requirements for Texas If codes used for Texas are different to those used for Louisiana, we could not do this. It would require different SNDs and XCS would have to use a completely different technique to record the information in XCS CLASS. Policy Details for the state of Texas.
Claim Details for Texas
Financial Breakdown for Texas Broker $750,000 for Texas Managing Agent $5,000 for Texas
Note 2 CORs – 1 COR per breakdown. The totals for Indemnity, fees and expenses must equal the figures supplied on the high- level Financial Details. If not, then no SCM can be released.
Adjusters are shown a summary. Information will be released to overnight run. Managing Agents will get 1 SCM for every breakdown / COR. If a settlement was involved, only a single Take Down Number (TDN) or settlement reference will be allocated. A single USM will be sent to each Managing Agent on risk and a single BSM will be sent to the broker providing information about the movement of money.
Foot of XCS Market Response screen As previously explained The broker identifies the first Lloyds lead. The Managing Agent is responsible for adding further Lloyds agreement parties when required, e.g. Special Category Liability, Ex-Gratia. Defer response is only available to XCS and is used for situations where the first lead has forgotten to tick another Lloyds agreement party where the Claims Scheme / Slip states there should be one. Defer will push the transaction back to Lloyds thus XCS are deferring from responding. XCS will receive this transaction again when that agreement party as responded. Now the SCMs are successfully released, the adjuster will respond in ECF. Had the initial review of the file revealed an issue, then no SCM may have been built in XCS CLASS. All previous comments made for this transaction are shown here – but a better option is to use the View Comments button. This would show all comments for all transactions for all markets in a single place.
Once it is agreed by XCS, the transaction becomes fully authorised. XCS agreement and public comments are returned to the broker in CLASS at Lloyds. Once this is seen, the broker can assume that any settlement will be transferred in the XCS CLASS overnight run.
For further information regarding ECF, please visit the London Market Group (LMG) website www.londonmarketgroup.co.uk