Placing process - Page 1 (includes: submission, indicative quote and firm quote)

Transcription

1 Placing process - Page 1 (includes:, indicative quote and firm quote) Request indicative quote indicative quotes? Request firm quote Propose new terms/resolution of issue Action? reviews options e.g. approach London insurers again, go to other markets, self-insure, amend deductible, increase retention etc. Do not progress firm quotes/terms offered (incl. subjectivities*)? Negotiation possible?? A (pg1 to pg2) firm quotes reviews options e.g. approach London insurers again, go to other markets, selfinsure, amend deductible, increase retention etc. followed for each leader Prepare for indicative quote (e.g. quote slip) (Re) Select leader(s) and present Provide indicative quote? te: May involve splitting placement into separate risks decline to broker In Scope: - Open Market new business and competitive renewals - client-initiated s Prepare & present indicative quote(s) to client Provide indicative quote (price & terms) NOT In Scope (there will be more!) - Binder authority agreements - Risks placed under binding authority master agreements - Line slips - Declarations off line slips - Marine cargo covers - Business placed via a service company - Global placements - insurer/broker-initiated orsements - n-competitive renewals (and where automatic ) - Premium adjustments (automatic) - Treaty processing - Use of electronic placing/accounting not directly reflected - Deferred s (installments) decline to insurer quote? te: Flows assume implicitly that right and full information provided first time from party to party Prepare/update for firm quote (e.g. full slip) Select leader and request firm quote each leader request for firm quote Provide firm quote? terms Find new leader decline to client decline to broker te: on type of documentation required will be discussed up front between client/broker/underwriter. * te: Subjectivities: Common practice is for subjectivities resolution to be carried on through the placing process (and potentially beyond), but they are regarded as a subset of terms offered decision to insurer quote? Prepare & present firm quote(s) to client Subscription? Provide firm quote (expected written line / price & terms) Select follower(s) and present quotes and /firm quote request and leader quote followed for each follower decline to broker Collate firm quotes Support? decline to insurer(s) n-default path / point

2 Placing process - Page 2 (includes: firm order) A (pg1 to pg2) Request firm order to be placed original firm order? & proceed with different terms original firm order? Prepare firm order (full slip incl finalising terms) Confirm acceptance of alternative terms to insurer Bureau Follower Leader London Broker Request line(s) to be written te: In some circumstances (e.g. facility) copy of full slip would go to leader and follower simultaneously full slip te: t possible to decline where firm quote has been given on same business Alternative proposed Outcome? Response business (bind / write line / scratch & stamp slip) Subscription? followed for each follower full slip te: Any change to Ts & Cs during placing will be via an inflight te: t possible to decline where firm quote has been given on same business Alternative proposed Outcome? Response B (pg2 to pg3) business (bind / write line / scratch & stamp slip) When all insurers addressed n-default path / point

3 Placing process - Page 3 (includes: finalising signed lines and provision of contract documentation / evidence of cover te: Broker may keep client informed of progress throughout the placing process Receive advice of completed placement review options e.g. approach London insurers again, go to other markets or self-insure Receive Evidence of cover te: Within 30 days for commercial business and 5 days for retail business each Receive Policy (as EoC) within 30 days Finalise signed lines (incl sign down to 100%) & advise client C (pg3 to pg4) Type of documentation required? Copy of slip, BID (not insurer recognised) Prepare & Issue Evidence of cover (within 30 days) B (pg2 to pg3) Tidy up of slip required? s order met? This will require broker reproducing the slip and circulating to insurer(s) for confirmation each insurer Go back to insurers to increase lines? Request increased lines request for increased line G (g4 to pg3) Increase? each bureau Insurer Add to UPR Wait until receive Bureau Amend slip & accept business (bind / write line / scratch & stamp slip) Draft and submit insurer (or addendum) AND Check (Stage 2) Amend Ok? Wait until closing submitted D (pg4 to pg3) each nonbureau Draft and issue to broker Sign and send to broker and remove from UPR Issue Policy Retain for client? n-default path / point te: These checks will move to pre-bind from 1st July onwards

4 Placing process - Page 4 (includes: original and additional accounting, notification of signed lines and Receive debit note Settle on one-off basis? Update ledger Settle Pay te: could be bureau insurer requiring reinsurance (LORS) and pay by central Prepare debit notes (invoice) and issue te: Typically non-bureau closings are not delinked but can be (using ACORD messages) Settle Receipt of Closings already submitted? (e.g. delinked) Trigger C (pg3 to pg4) each insurer / bureau Amend E (pg5 to pg4) Prepare closing for insurer/bureau (incl LPAN) & copy of slip, using delinked process Perform accounting checks (Stage 1) Ok? te: Further nonfundamental splits may be required. These may be completed by various parties. Submit before receipt of? (e.g. delinked) Bureau? Forward closing details and signed lines message (via USM and BSM) Receive BSM and update ledger Receive closing details and signed lines message (USM) (and message if not delinked) Settle and send message Was it delinked? Delay until receipt of Internal reconciliation etc and end to insurer D (pg4 to pg3) closings on ledger G (g4 to pg3) Receive message Wait until is triggered (AND) Settlement message? Add to of account Settle Settle Bureau? Central of and send message (USM) to insurer Receive message (USM) Internal reconciliation etc and end n-default path / point

5 Placing process - Page 5 (includes: agreeing an and provision of documentation) E Request (pg5 to pg4) adjustment to existing contract? Proceed with partial agreement? May need to create an to back out of original Receive documentation te: orsements of sufficient complexity / material significance will transfer to placement process te: This may involve the client requesting an indicative quote for the impact of the existing contract and impact of Prepare & present (honeycomb) to leader Alternative proposed Outcome? Response? Determine agreement parties Confirm agreement and GUA parts if relevant GUA used on approximately 60% of bureau-based business ment parties? Specific followers (e.g GUA part 2) Present to assigned agreement parties te: In Lloyd s market, this can just go to the leader who informs the following market All followers (e.g GUA part 3) Present to all follower(s) Confirm acceptance of alternative terms to insurer Just leader (e.g GUA part 1) followed for each follower Alternative proposed Outcome? Response? Establish next steps Prepare and issue finalise notification e.g. honeycomb or equivalent BID When all insurers addresse d Confirm agreement Additional E (pg5 to pg4) Premium implication? Additional / return? Return F (pg5 to pg6) n-default path / point

6 Placing process - Page 6 (includes: return accounting and ) te: could be bureau insurer requiring reinsurance (LORS) and pay by central Receive credit note Settle on one-off basis? Update ledger Receive Settle each insurer / bureau te: Assumed that return is not delinked Receipt of Prepare credit note and issue te: Broker may issue credit note in advance of this. Settle F (pg5 to pg6) Amend te: Further nonfundamental splits may be required. These may be completed by various parties. Prepare closing for insurer/bureau Bureau? (incl LPAN) & copy of slip, using delinked process Perform accounting checks (Stage 1) Ok? Forward closing details and (via USM and BSM) Receive BSM and update ledger Receive closing details and message (USM) Settle and send message to insurer Internal reconciliation etc and end closings on ledger Add to of account Settle Settle n-default path / point