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.
Full name and full phone
number in case of query
BKR CLAIM
REF1
Same Ref as used
in the Broker’s
system. for the
transaction to
ensure matching
of BSM
SLIP LEAD (CARRIER CODE)
ECF CLAIM
The London bureaux leader. Creates ownership of claim
in the IMR. Populate with Lloyd’s Syndicate number,
Lirma Stamp or ILU first 6 digits.
Defaults to Y for Lloyd’s, N if paper file, T if transition
transaction from paper to ECF
There are no specific ECF fields on this screen
There are no specific ECF fields on this screen
There are no specific ECF fields on this screen
Unsigned risks on Lloyd’s ECF are ‘Out of Scope’
Note: Format of Orig Signing = YYYY/MM/DD Number
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
Standard Details
Broker On-Line view of responses
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
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.
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.
Select to add documents
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.
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.
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 create to load
Note the difference where the date is not completed on
loading.
The transaction is now ready for adjusters.
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. It’s 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.
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 on next page
Continued from previous page
The financials
Documents in
support of the
transaction being
presented for
agreement by the
broker
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.
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
Lloyd’s 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 Lloyd’s Claims
Scheme.
Continued on next page
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 you’re 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 they’ve corrected a
claim that you’ve 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 you’ve 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’.
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)
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, coinsurers & management if the item is
above your authority limit; thus saving
time. (see slide 39 for example.)
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
XCS Perspective
As soon as the final Lloyd’s 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.
The first task is to review the presentation. At
this stage, XCS will not yet respond to the
transaction.
All fields are reviewed
but those highlighted
may cause problems.
Loss Date
Screens seen by
XCS are much the
same as those
seen by a
Managing Agent.
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.
Slip Order
Broker Narrative
Free format with varied
uses including:
This should be the
broker’s order and
not Lloyd’s share.
(These may be the
same of course.)
Limits and
Excesses
• Indemnity / Fee split
• Reason for re-releasing
• AP signing when FDO used.
Policy Period
Continued on next page
For binder individual UCR, this
should be the policy period for
the individual risk and not the
binder.
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.
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 Lloyd’s to extract reports and Lloyd’s
regulatory requirements to be satisfied
07:00
Create claims information
Amend claims information
End of Working Day
Incorrect information can be
reset up to 7pm when system
goes down
Overnight Run
If settlement involved
Syndicate
Claims
Broker
Underwriter
Message (SCM)
Signing
Signing
(Every syndicate / every claim)
Message (BSM)
Message (USM)
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.
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
Indication as to whether or
not a settlement is to be
processed
ECF Classification
This is an example of field used to extract a report for
Lloyd’s. 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 broker’s 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 Lloyd’s Catastrophe Code which allows Lloyd’s 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 Lloyd’s 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.
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.
Regulatory Requirements.
Lloyd’s obtain licences from
insurance regulators around the
world.
This
allows
Lloyd’s
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
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”.
Need 1 SCM for each State
Policy Details for the state of Louisiana.
FIL Codes are used by insurance regulators.
FIL Code / Trust Fund Code / State Code are a regulatory
requirement.
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.
Regulatory Requirements for Louisiana
Claim details for state of Louisiana.
Service Type
Identifies the 2009 Service Type derived using the appropriate triage rules.
This is a mandatory field
Can be:
Standard TP
Standard CAF
Complex CAF
Technical Accounting
Threshold TP
Claim Details for Louisiana
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’.
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.
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.
Financial Breakdown for Louisiana
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.
Policy Details for the state of Texas.
If codes used for Texas are different to those
used for Louisiana, we could not do this. It
would require different SND’s and XCS would
have to use a completely different technique to
record the information in XCS CLASS.
Regulatory Requirements for Texas
Claim Details for Texas
Broker
$750,000 for Texas
Managing Agent
$5,000 for Texas
Financial Breakdown for Texas
Note 2 COR’s – 1 COR per breakdown.
The totals for Indemnity, fees and expenses
must equal the figures supplied on the highlevel 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
Now the SCM’s 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.
As previously explained
The broker identifies the first Lloyd’s lead.
The Managing Agent is responsible for
adding further Lloyd’s 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 Lloyd’s agreement
party where the Claims Scheme / Slip states
there should be one. ‘Defer’ will push the
transaction back to Lloyd’s thus XCS are
deferring from responding. XCS will receive
this transaction again when that agreement
party as responded.
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 Lloyd’s. 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