Lloyd's Europe
Software from RealXS was originally co-developed to offer insurance products hosted by Dutch insurers & Lloyd's Underwriters.
Lloyd's of London is an insurance market similar to the Assurantiebeurs as we know it in the Netherlands.
In the years when Team RealXS was still heavily involved in underwriting insurance products that could be underwritten by insurers active in the insurance market in the Netherlands, it was always a hassle to get insurers to agree to specific conditions, insurance products and rates.
Lloyd's Underwriters, on the other hand, possessed a wealth of experience gained from their activities that spanned the globe.
Everything was covered:
Tariffs;
Limit table:
Discounts;
Surcharges;
Mandatory and optional clauses.
All of which then had to be set out in a power of attorney agreement (full binding authority).
So you could also become much wiser from Underwriters. And thanks to a lot of patience on both sides, we could usually finally present an insurance product that could be successfully launched on the Dutch market.
During the compilation of this new version of RealXS Software, we decided to give insurers the opportunity to have general structures laid down for certain insurance products. This is optional, but it offers insurers the possibility to enable the intermediary to respond very efficiently to basic wishes that are sacred to them. At least if there are insurmountable limits. If the product remains within the limits set by insurers in advance, he knows that insurers will not have to raise underwriting objections.
Lloyd's of London
A Binding Authority is usually drawn up from head to tail by the Lloyd's Broker who has always kept the minutes during negotiations. He must therefore ensure that it adequately reflects the agreements made by the Leading Underwriter and the Coverholder.
More often than not, it turns out later that the Binding Authority features regulations that were not discussed or were interpreted differently by the Coverholder. And so then the whole circus starts all over again.
Concept Binding Authority
The Back Office can be set up so that the Coverholder can print an almost complete Concept Binding Authority. In it, he can record in detail:
how his staff should handle applications,
how the underwriting process works,
what should be in an offer,
how the IPID is put together and
what else is involved in issuing the policy, which, after all, must report the percentage shares of all insurers.
If the Coverholder has done its job properly, Underwriters have been adequately informed of the course of action. And should there still be any wishes or comments on their part, these can be taken into account by the Lloyd's Broker in the final version of the Binding Authority.
Strengthen and accelerate through pure agreements
This course of action will - we expect - not only increase the speed of the negotiation process, but in particular strengthen the purity of the administrative processing and remittance of premiums.
We expect that the insurance market will be eager to make use of this option.
Lloyd's Europe Insurance Company
One of the consequences of the Brexit was that Lloyd's lost its position as a recognised insurer in the EU.
This applied, incidentally, to all UK insurers doing business within the EU.
And for all EU insurers wishing to continue doing business in the UK.
Lloyd's Europe Insurance Company is the new channel for insurance covered by the reinsurers at Lloyd's.
New opportunities for Correspondents
The shortage of well-trained applicants is glaring. Even in the insurance industry. Outsourcing is an option that should be seriously considered again, because:
Thanks to
- the robot-Underwriting;
- automated-bid-proposal;
- integrated financial-administration;
- tailor made IPID;
- autmated policy formatting;
and digital-signing by the insurer itself or its proxy, unprecedented new opportunities for an efficient approach in which the intermediary can play a greater role are arising.
