The Central Services Refresh Programme (CSRP) is launching with a planned initial release in April 2016, when it is anticipated that the first broker premiums submissions into Central Services will be made using ACORD EBOT messaging. This is the first release as part of the work to deliver a new channel for the accounting submissions for premiums and claims into Central Services (the ‘bureau’) based on global messaging standards. Read the update below.
London Market TOM & Central Services Refresh Programme:
• The London Market Target Operating Model (TOM) Programme is a core component of the Market Modernisation proposal set out by the London Market Group (LMG) to improve the ease of doing business in the London Market.
• One of the key London Market TOM initiatives, the Central Services Refresh Programme (CSRP), is launching with a planned initial release in April 2016. This bulletin provides information on CSRP and what Carriers need to be aware of ahead of the launch date.
• CSRP is working to improve broker access to the London Market by removing London specific systems and processes, (‘Londonisms’). Post-bind Submission (PbS), the first phase of CSRP, is delivering a new channel for the accounting submissions for premiums and claims into Central Services (the ‘bureau’) based on global messaging standards (ACORD).
• From April 2016, it is anticipated that the first broker premiums submissions into Central Services will be made using ACORD messaging. The volumes will initially be low and the submissions will be on Excess of Loss business. Any claims on business where the premium submission has been made via ACORD messaging will be processed through existing channels, pending the implementation of global standard messaging for claims.
Adoption for Carriers:
• For adoption of this initial release of CSRP, Carriers do not need to make any process or technology changes.
• PbS is focussed on making London an easier marketplace in which to trade and increasing the potential for global business to be placed in London. Carriers benefit from faster broker processing times due to technical submissions being made at a fundamental level. Increased automation, improved data accuracy and fewer settlement queries will lead to a reduction in unallocated cash and shorter settlement times.
• As referenced in previous market circulars, the Deferred Scheme (a ‘Londonism’), with its automatic settlement on pre-determined dates, will not be supported by the PbS channel. Instalment Premiums processed through the PbS channel will be settled as individual de-linked premiums outside of the Deferred Scheme.
• Future CSRP releases will support further broker adoption by delivering the functionality to support global standard messaging for claims submissions and for additional premium submission types. In addition, an online portal is planned for brokers (and service companies) that choose not to invest in an integrated messaging solution.
• CSRP will also implement further changes to modernise Central Services’ processing and interactions with Carriers. The introduction of global messaging standards into Central Services will allow, subject to market consultation on timing, the eventual retirement of the existing London post-bind submission channels (i.e. Paper, A & S & eAccounts).