The Society of Lloyd’s has issued a Market Bulletin explaining the new data collection requirements under the Solvency II Directive (2009/138/EC). The new data collection requirements will apply from 1 January 2016, from which date managing agents will be required to collect more data from coverholders and third party administrators.
The Market Bulletin consolidates previous advice on data collection requirements and also includes advice to managing agents and Lloyd’s brokers as to the steps that they should take to prepare for the introduction of the new requirements.
It also explains what the new requirements mean for coverholders/TPAs, as well as setting out the means by which the LMA and Lloyd’s will facilitate the data collection requirements. For example, the LMA will, through its Delegated Authorities Operations Committee (DAOC), be releasing revised coverholder premium and claims data standards at the end of May 2015.
The new requirements will apply:
- To “high product risk” products.
- To business underwritten by a coverholder through a binding authority from 1.1.16 onwards.
- Where the Lloyd’s customer is domiciled or registered in the UK or EEA.
The Market Bulletin is a helpful consolidation of the previous advice published by Lloyd’s on the new data requirements and will be of interest to managing agents, brokers, coverholders and TPAs who are likely to be subject to them. It will be important for such parties to work with their advisors to ensure that they are properly prepared for the introduction of the new requirements. A copy of the Market Bulletin can be found here:http://www.lloyds.com/~/media/files/the%20market/communications/market%20bulletins/2015/05/y4898.pdf.