HOW IT WORKS
HOW IT WORKS
Jordan has over 18 years experience in the industry having spent the last 16 years at Commercial Express.
A primary function of Jordan’s roles during his time with Commercial Express has been the running of the schemes from an underwriting profitability point of view for insurers, as well as working closely with agents to develop products and schemes.
Jordan has over 18 years experience in the industry having spent the last 16 years at Commercial Express.
A primary function of Jordan’s roles during his time with Commercial Express has been the running of the schemes from an underwriting profitability point of view for insurers, as well as working closely with agents to develop products and schemes.
Cedar currently work under 2 different models on behalf of Lloyd’s and non-Lloyd’s capacity providers and have full processes and policies in place for both.
Lloyd’s tripartite model
We are approved Lloyd’s coverholders and can work on a tripartite basis with other Lloyd’s coverholders to Lloyd’s standards
Sub-Delegation to non-Lloyd’s coverholders
We also administer capacity on behalf of insurers to non-Lloyd’s coverholders using a sub-delegation model where the onus is on Cedar to manage the whole process from cradle to grave
Lloyd’s tripartite model process overview
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(New Intermediary) Cedar would undertake a Triage Process to assess the viability of a product. This would include
o Overview of the opportunity
o Target Portfolio
o Distribution Chain
o Competition and Market Issues
o Historical and target Loss Ratios
o Proposed financial metrics
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Once the above is obtained this would put us in a position to start discussing the scheme with potential insurers. Once we have an agreement that the scheme is something that the insurer is interested in writing we move on to the next stage of the process
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Various pieces of information such as complaints & complaints handling, compliance policies e.g. Anti-Money laundering, Bribery, Sanctions, Data Protection/GDPR, Vulnerable Customers, PI Insurances & financial records etc. This information will then enable us to complete our due diligence process
o Rating review per scheme
o Initial Documentation review to review policy wordings, IPID, statement of fact, renewal letters etc to ensure that this is within the terms of the agreed binder and within regulations
o Documentation review (which is ongoing) - review of cover to ensure that the product is fit for purpose
o Sanctions Check – against company and directors and to understand the process that the Intermediary undertakes sanctions checks on clients to ensure that this is acceptable for the scheme arrangements
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Cedar create a “Policy Pack” which would include items such as the rating guides, policy wordings, EL certificates (where applicable), question sets etc together with a completed Schedule (which details the parameters of the scheme to the intermediary). This is then submitted to the insurer to sign off the scheme from an underwriting perspective
When the Scheme has been signed off Cedar undertake the following
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IT Review, this would check the Intermediaries system for the following to ensure that the scheme is built /transferred correctly
o Premiums
o Trade/Occupants
o MTA/Cancellations
o General Business Rules
o Claims refer
-
BDX Management
o convert incoming BDX into required format
o carrying out validation checks on BDX against UW guides
-
Binder Management
o Monitoring income limits
o Cedar Schedule Endorsements within the terms of the Binder with Insurer
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MI including
o NB take up
o RNL retention
o GWP analysis down to scheme trade and event type.
The MI is available to both Insurers and the Intermediary who will be set up with their own logins so that the data can be viewed as and when required. Data is updated Daily
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Internal MI reviews against referrals into Cedar assessing both the intermediary staff members and cedar staff members includes decline and take up rates by person etc
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Monthly Meeting with Intermediary which covers:
o Performance of Scheme including loss ratio
o Claims
o Management Information and BDX Data
o Strategy
o UW, Pricing and Referrals
o Audits
o Systems
o Compliance
o Complaints
o Training
-
Monthly meeting with insurer
o includes information as shown in the Intermediary meetings and Product Oversight and Governance
-
Training provided to Intermediary on UW topics where required
o Recent training courses carried out include Legal titles and Financial History
-
Binder Management
o Monitoring income limits
o Issuing Cedar Schedule Endorsements within the terms of the Binder with Insurer
-
Money Collection
o Responsibility for collecting BDX payments to ensure that payment is made to Lloyd's broker within the terms of the binding authority agreement
-
Product oversight and governance (POG) – please see the attached POG policy based on insurer requirements
-
Ongoing Documentation Reviews which includes:
o Claims repudiations monitoring
o Claims referrals / amending policies where cover may not be clear or is misleading in conjunction with the Intermediary
o Regular team meetings and feedback
-
Audits
o File reviews carried out every 3/6 months depending on the size of the scheme which are completed to ensure that the Intermediary is operating within the terms of the agreed UW guide
Sub-Delegation to non-Lloyd’s coverholders process overview
-
(New Intermediary) Cedar would undertake a Triage Process to assess the viability of a product. This would include
o Overview of the opportunity
o Target Portfolio
o Distribution Chain
o Competition and Market Issues
o Historical and target Loss Ratios
o Proposed financial metrics
-
Once the above is obtained this would put us in a position to start discussing the scheme with potential insurers. Once we have an agreement that the scheme is something that the insurer is interested in writing we move on to the next stage of the process
-
TOBA – A TOBA is issued for signing (we obtain a TOBA so we have confidence that the intermediary is prepared to work with us on the scheme. The TOBA does not come into effect until a Schedule is also signed and agreed), together with requesting various pieces of information such as complaints & complaints handling, compliance policies e.g. Anti-Money laundering, Bribery, Sanctions, Data Protection/GDPR, Vulnerable Customers, PI Insurances & financial records etc. This information will then enable us to complete our due diligence process we sign off after review
-
The due diligence process consists of
o Review of all compliance policies
o Rating review per scheme
o Initial Documentation review to review policy wordings, IPID, statement of fact, renewal letters etc to ensure that this is within the terms of the agreed binder and within regulations
o Documentation review (which is ongoing) - review of cover to ensure that the product is fit for purpose
o PI Insurance Check – as part of our TOBA we require any intermediary to hold PI insurance with a minimum acceptable amount. We may also request the intermediary to hold Cyber liability insurance, but this would depend on the intermediary itself and what IT/controls they have in place
o Sanctions Check – against company and directors and to understand the process that the Intermediary undertakes sanctions checks on clients to ensure that this is acceptable for the scheme arrangements
o Credit check on Intermediary
-
Once the due diligence process has been completed and we are happy with this Cedar create a “Policy Pack” which would include items such as the rating guides, policy wordings, EL certificates (where applicable), question sets etc together with a completed Schedule (which details the parameters of the scheme to the intermediary) and a attestation form confirming that the due diligence process has been completed. This is then submitted to the insurer to sign off the scheme from an underwriting perspective
When the Scheme has been signed off Cedar undertake the following
-
IT Review, this would check the Intermediaries system for the following to ensure that the scheme is built /transferred correctly
o Premiums
o Trade/Occupants
o MTA/Cancellations
o General Business Rules
o Claims refer
-
BDX Management
o convert incoming BDX into required format
o carrying out validation checks on BDX against UW guides
-
Binder Management
o Monitoring income limits
o Cedar Schedule Endorsements within the terms of the Binder with Insurer
-
MI including
o NB take up
o RNL retention
o GWP analysis down to scheme trade and event type.
The MI is available to both Insurers and the Intermediary who will be set up with their own logins so that the data can be viewed as and when required. Data is updated Daily
-
Internal MI reviews against referrals into Cedar assessing both the intermediary staff members and cedar staff members includes decline and take up rates by person etc
-
Monthly Meeting with Intermediary which covers:
o Performance of Scheme including loss ratio
o Claims
o Management Information and BDX Data
o Strategy
o UW, Pricing and Referrals
o Audits
o Systems
o Compliance
o Complaints
o Training
-
Monthly meeting with insurer
o includes information as shown in the Intermediary meetings and Product Oversight and Governance
-
Training provided to Intermediary on UW topics where required
o Recent training courses carried out include Legal titles and Financial History
-
Binder Management
o Monitoring income limits
o Issuing Cedar Schedule Endorsements within the terms of the Binder with Insurer
-
Money Collection
o Responsibility for collecting BDX payments to ensure that payment is made to Lloyd's broker within the terms of the binding authority agreement
-
Ongoing Documentation Reviews which includes:
o Claims repudiations monitoring
o Claims referrals / amending policies where cover may not be clear or is misleading in conjunction with the Intermediary
o Regular team meetings and feedback
-
Product oversight and governance (POG)
o Regular checks on claims repudiations and referrals
o Identify changes required in coverage to ensure the end client is treated fairly
o Insurance Distribution Directive review of new products
-
Audits
o A full audit will be carried out every 12 months where the scheme is <£2M and where above £2M every 6 months
o File reviews carried out every 3/6 months depending on the size of the scheme which are completed to ensure that the Intermediary is operating within the terms of the agreed UW guide