Claim Accounting & Settlement, Broker phase two, Insurer phase one

ACORD-standardised messaging, EBOT, will be available from phase two. In this scenario, the broker who is in phase two can trigger the premium accounting process via an EBOT message. This will trigger the separation of the technical account (TA) and financial account (FA), but the insurer who is in phase one will remain unaffected by it.

The broker can provide additional info (which does not exist in EBOT) via API. Alternatively, the broker can submit all info via the portal.

In the future, Velonetic (previously London Market Joint Ventures) will initiate settlement on any agreed claims, but the criterion of what constitutes an agreed claim changes. In phase two (i.e. in the EBOT process), a claim is considered agreed if it has the following 3 things:

• agreed CMs (same condition as today and in phase one);

• agreed TA and

• agreed FA. 

This doesn't necessarily mean that there is an extra manual action on the broker to provide TA and FA, some broker systems already have an automated process in place for this.

The broker is expected to submit a claim at a fundamental level, as they do today and in phase one, and Velonetic will continue to break it down to non-fundamental level for Lloyd's reporting.

In this scenario, the broker is in phase two, so will use the Market Gateway (ASG Adept) to submit EBOT and API messages to trigger the Accounting & Settlement process. This does not necessarily mean a manual action by the broker, some broking systems can do this process automatically once a claim has been agreed.

The broker is able to use the ICOS portal for TA and FA submission, as an alternative to the EBOT submission which triggers the accounting process.

ICOS is the new claims processing platform replacing ECF and CLASS. It will remain unchanged from phase one, although there will now be the option to interact with it via ECOT, EBOT and API.

Once the broker has adopted phase two and starts using the EBOT process, this will enable a higher level of automation of the Velonetic’s processes of accounting & settlement.

There is a new Step 2 in the Accounting & Settlement process for claims. This is because the broker is in phase two, so they have adopted the EBOT process, which has this additional Validation and Query step. If brokers are on phase one, then they would use the old manual process to submit claims to Velonetic and this step wouldn’t exist.

Both insurers and brokers (regardless of what phase they are in) will be able to submit, view and respond to queries via the ICOS portal, this will not change from phase one.

In this scenario, the broker is in phase two and will be able to view and respond to query messages via EBOT and API.

In this scenario, the insurer is in phase one, so they will receive Standardised EDI messages, which will be unchanged from phase one.

Insurers who are still in phase one will continue to receive CWT messages as they do in phase one.

EDI and CWT will go through the Market Gateway (ASG Adept), this is unchanged from phase one.

A Velonetic technician will manually process the agreed Lloyd’s claim in order for it to go through to the settlement stage.

Claims netted settlement will still occur through Central Settlement. Central Settlement is not changing and will still work via STFO for Lloyd’s and via RBS for the company market.

It is expected that there will be no changes to Central Settlement bank accounts. Central Settlement is expected to work as it does today but with feeds from the new digital services rather than the existing ones.

Direct Settlement will remain unchanged from phase one.