Service Company Adoption:

Post-bind Submission
Intro and Positioning

The new Post-bind Submission channels are now available to Lloyd’s Service Companies for their
non-cash premium submissions to XIS. Cash premiums and claims can also be processed via PbS.

The methods of submission are the ACORD messages for Technical Account and Financial Account
(FA messages trigger money movement via central settlement if required), achieved either by:

 via the web portal, electronic Submission Portal (eSP), a centrally provided facility that
generates standard ACORD messages
or
 system to system messaging, where an organisation has the ability to generate ACORD
messages

All messages are routed via The Message Exchange Limited (TMEL) to enforce compliance with
messaging standards and benefit from a single co-ordination point.

Claims submissions not requiring cash settlement will need to continue being achieved via ECF or
an email message plus attachments until the ability for non-cash claims is added in to the ACORD
messaging solution as part of PbS Release 1.3, expected in late 2018.

Benefits of Adopting the PbS Submission Channels

Service Companies will experience similar benefits to brokers and a few additional items:

 improved processing cycles and, for cash items, improved cash flow
 reduced number of queries
 use of the PbS Online Query Portal to resolve and track queries
 ability to submit at the fundamental level and have XIS create non fundamental level
transactions (to drive Lloyd’s reporting), i.e. the “Accounting Splits Service” as it is
generally known
 Bureau (Broker) Signing message returned at level of submission
 Underwriter Signing Message advising at lower reporting split level

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Where the submission is at the “fundamental” level and the reporting splits are created by XIS, to
enable XIS to create the records it will still be necessary to submit the same supporting
documentation which is used by XIS for validation purposes today. For full details regarding
accounting splits, see the ‘Carrier Accounting Entries Service’ which can be found on the LMA
website.

Where to Find Out About System to System Messaging

The PbS Interface Specification, accessed via the LMTOM CSRP web pages, provides technical and
process detail on what messages and interactions Service Company systems would need to
accommodate if a direct system to system communication was the preference. This is possibly
attractive and worth considering where your firm already has a messaging capability in say P2P
business interactions. If such a capability does not already exist then the recommendation is to
adopt the eSP.

Delivering a new channel for Post-bind Submissions

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About the electronic Submission Portal (eSP)

The London Market Group sponsored the development of the eSP for use by small to medium
sized brokers and service companies, so that they could adopt new processing methods at
minimal disruption and change. There is no additional charge for use of the portal. Service
Companies will need to engage with Web Connectivity Limited (WCL) for training and service
registration; as a submitting broker and as a syndicate for the resolution of queries.

There are three methods of completing a submission, use of direct data entry; uploading a
spreadsheet to automatically transfer data; or via use of an API (automated programme
interface). The latter service will involve WCL in additional activity so this will attract a charge.

The portal includes the ability to drag and drop documents required to support the submission.

The portal generates ACORD messages to XIS, conforming to the required validations and data
standards. All message responses and any corrective actions are handled from within the portal.

A User Guide will be available soon on the LMTOM website.

Considerations

Where premium cash submissions invoke the accounting splits service “broker” monetary value(s)
will be at the fundamental level whereas the “syndicate” monetary values will be at the reporting
split level. When aggregated, the latter will equate to the former’s value, XIS and Lloyd’s Central
Settlement ensure this is the case.

Queries will route to either the “broker” or “syndicate” identifier code, depending on the query
category.

Where the submission is made at the “fundamental” level and the reporting splits are created by
XIS, it may result in different values than those held in Service Company systems due to rounding
etc. Consideration may need to be given to reconciliation checks. It will be the XIS created values
that will be included in Lloyd’s tax and overseas regulatory reporting filings.

Where to Find More Information

For more information on CSRP you can visit the LMTOM website:
tomsupports.london/central-services-refresh-programme

Or contact Stuart McPhee at stuart.mcphee@lmtom.london

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Onboarding and Adoption

Any firm adopting system to system messaging will need to liaise with XIS and progress through
an onboarding process, to test system interactions, message construction, response message
handling and business processing methods. Please contact Brian Austin at
brian.austin@lmtom.london if this is your preferred method of adoption.

The eSP’s connectivity and message construction and handling is already proven so the
onboarding for the portal focusses on familiarisation with the portal and then, when readied, a
low number of test interactions with XIS to prove user understanding and the business process
interactions.

Links below point you to general information regarding the portal and how it operates but if you
would like to begin discussions regarding commencing onboarding please contact
brian.austin@lmtom.london.

Withdrawal of Legacy Submission Methods

One of the Market objectives and features of the new service contract agreed with XIS, is the
rationalisation of submission methods and processing within XIS.

The PbS adoption plans of all brokers are under review and at an appropriate time notice will be
served that legacy channels will be withdrawn at a given date, to incentivise remaining firms to
migrate to the new methods.

V0.4 29th January 2018

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