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

Managing Agent playbook – phase two

In this scenario, the Insurer has adopted phase two solutions while the Broker has only adopted phase one solutions

phase two pas three diagram

Step 1: Accounting Submission

LPAN

LPANs can continue to be submitted to trigger the accounting and settlement process via two routes:

  • IMR

  • DRI

Actor Central Services NoChange

Market Gateway

The Market Gateway (ASG Adept) will remain unchanged from phase one. All EDI and EBOT messaging will go through the Market Gateway (ASG Adept).

Actor Broker NoChange

EDI (RESETT)

Brokers will be able to submit RESETT messages via the Market Gateway (ASG Adept) to IPOS to release delinked payments. This will remain unchanged from phase one.

Actor Broker NoChange

IPOS Portal

Portal access to IPOS will remain unchanged from phase one. At accounting submission, the IPOS portal can be used by the broker to release delinked payments but not to submit an LPAN, which will continue to remain available via the IMR.

Actor Central Services NoChange

IPOS

IPOS, which has gone live in phase one, is the premium processing platform replacing LIDS.

In this scenario, where the broker is in phase one, the transaction will be triggered by an LPAN and will then be processed manually by Velonetic (previously London Market Joint Ventures). IPOS will have a higher level of automation in Velonetic’s processes of accounting & settlement, but these benefits will not be realised if the broker is using an LPAN to trigger the transaction.

Step 2: Validation and Queries (if applicable)

Actor Central Services NoChange

Reach Back

In the case of a new transaction on an original premium which is held in legacy platforms (e.g., LIDS), such as in the case of endorsements, Reach Back will find the old premium data and bring it to IPOS, for a central view of the premium and premium history.

Actor Broker Insurer NoChange

IPOS Portal

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

Step 3: Messaging

Actor Broker Insurer NoChange

IPOS Portal

Both insurers and brokers will be able to view details of the signing on the IPOS portal, a functionality similar to Account Enquiry. Please note, this is not a reconciliation tool and will not contain the full data required to do reconciliation of transactions. This will not change from phase one.

Actor Central Services NoChange

Market Gateway

The Market Gateway (ASG Adept) will remain unchanged from phase one. All EDI and EBOT messaging will go through the Market Gateway (ASG Adept).

Actor Broker NoChange

Standardised EDI

Brokers who are still in phase one will receive Standardised EDI messages as they do in phase one.

Actor Insurer DefiniteChange

API

In this scenario, the broker is in phase one and has submitted an LPAN. LPAN submissions cannot generate EBOT TAs or FAs. Transactional information will be available to digital insurers via supplementary APIs only.

Supplementary APIs will also provide information which is not available in the EBOT messages, such as non-fundamental splits, original signing number and date, actual payment date. API specs are expected to be published in end Q1 - end Q2 2024.

Each organisation will have their own notification preferences, which will be unaffected by other organisations on the policy or claim. Therefore, an insurer who has selected EBOT and API as their notification preferences will only receive EBOT and API, even if other insurers on a policy use other formats.

Step 4: Settlement

Actor Central Services NoChange

Netting off services, Central Settlement

Net 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.

Actor Central Services NoChange

Direct Settlement

Direct Settlement will remain unchanged from phase one.

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Managing Agent playbook links