Lloyd's Outwards Reinsurance Scheme (LORS)

This overview provides some background on LORS and how this is being managed as part of Blueprint Two phase one

Background

LORS is a collective name for the integrated processes and computer systems that are linked together to handle Lloyd’s outward reinsurance premium and claims transactions. Velonetic provide the central repository of data and controlling system for the scheme.

Outward reinsurance is an important part of the Lloyd’s market enabling syndicates to manage their risk appetite.
 

Woman looking at reports on two laptop screens

Maintaining continuity while enhancing service

Brokers access LORS via a portal and enter data directly through a series of interactive screens. The data is validated and displayed to the underwriters, who are able to authorise or object to the items within the system. After items are authorised, they are forwarded for settlement. The alternative method of LORS processing is via Batch EDI messages. This allows direct communication between brokers, underwriters and LORS system via EDI messages using the Xchanging Data Hub (XDH) Gateway.

As part of Blueprint Two, phase one, a new digital LORS application will be introduced and will replace the existing LORS system. LORS processes will continue to be managed in the same way with brokers, syndicates and reinsurers transacting through the replacement digital LORS application. This approach provides process continuity, but with the benefits of a new digital service. 

Accessing the DPS LORS

The new LORS service will be available as part of the new Digital Processing Services (DPS) and accessed via a new user portal. The portal is fully re-designed, and users will need new login credentials.

Accessing these services will be covered as part of the onboarding and training plans envisaged for the market. Details will follow as we approach go-live to ensure onboarding and training is delivered at the most appropriate time. 

LORS EDI messages

LORS has its own set of EDI messages covering a range of transactions including:

Broker transactions

LIMRIN notification to the LORS system

LIMRES error or confirmation message is returned to the broker

Underwriter responses

LIMRIA notification to underwriters that an RI item is awaiting action in LORS

LLDUWR response message from the underwriters for the broker

LIMRES error or confirmation messages returned to the underwriters

LLDUWR response messages from the underwriters for the broker

Amendments

LIMRIN messages created by the broker where there are any amended items

LIMRES messages returned to the broker

LIMRIA messages generated for LORS underwriters

Deletions

LIMRID messages created by the broker referencing items to be deleted

LIMRES messages returned to the broker

LIMRID messages generated for LORS underwriters

Replacements

LIMRIN messages created by the broker where there are any amended items

LIMRES messages returned to the broker

LIMRIA messages sent to LORS underwriters to authorise the replacement

Cancellations

LIMRID messages created by the broker referencing items to be cancelled

LIMRES messages returned to the broker

LIMRID messages sent to LORS underwriters to authorise the cancellation

Status reporting

LIMRIS reports are generated for each broker and underwriter associated with a LORS transaction on completion of the LORS end of day off-line processing with the current status of transactions


The Bureau Signing Reference contained in the LIMRIS can be used to match items with the data provided in the Broker Signing Message (BSM) and the Underwriters Signing Message (USM).

Details of supported EDI messages can be found on the EDI pages of the Blueprint Two website.

The pathway to delivering the new digital LORS service  

LORS will be introduced into the testing cycles once available and will be part of the Vanguard, the LIMOSS CCT, and the Enhanced Customer Testing scope.

Get adoption ready

Blueprint Two will be delivered in two phases. At phase one cutover, all market firms must adopt the new digital services.