Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2016 - LOLRS 800.1 Policy Data: Public and Product Liability and Professional Indemnity Insurance
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Data specifications for individual policies for public and product liability and professional indemnity Insurance
Overview
These specifications have been prepared for the purpose of defining the policy information required to be submitted by Lloyd’s in respect of public and product liability and professional indemnity insurance. This information will contribute to a National Claims and Policy Database (NCPD) in respect of these classes of insurance. The intention is to create a database that holds information in respect of claims and policies for public and product liability and professional indemnity on a national basis.
Details of requirements in relation to reporting periods, method of submission and authorisation are set out in the reporting standard. The data submitted by Lloyd’s will be validated by APRA each reporting period. The data validation to be performed is outlined in Appendix A.
Record Layouts and Field Specifications
Policy Data Specifications
Policy Data
Data Item
Public &Products
Professional Risk
Field type1
1*
Insurer code
M
M
6a
2*
Class of Business
M
M
2a
3*
Record type
M
M
1a
4*
Policy Basis
M
M
1a
5*
Status
O
O
1a
6*
Month of end of Reporting Periods
M
M
8n
7*
Policy number
M
M
30a/n
8*
Risk number
M
M
30a/n
9*
Product type
M
M
3a
10
Original Inception Date
O
O
8n
11
Date of commencement / inception (Term Inception Date)
M
M
8n
Part Record Layouts and Field Specifications - Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2016 - LOLRS 800.1 Policy Data: Public and Product Liability and Professional Indemnity Insurance - Record Layouts and Field Specifications | Zoe
12*
Effective Start Date
M
M
8n
13
Term Expiry Date
M
M
8n
14*
Effective End Date
M
M
8n
15a
Gross Annualised Premium
T
T
12n
15b
Gross Earned Premium
T
T
12n
16
Gross Written Premium
M
M
12n
17a
Turnover
O
O
12n
17b
Total assets
O
O
12n
17c
Professional fees
O
O
12n
17d
Total number of staff
O
O
12n
17e
Other
O
O
12n
17f
Description of “Other”
O
O
50a
18
State
O
O
3a
19
Postcode
O
O
4n
20
Excess/Deductible/Attachment point
M
M
12n
21
Limits of Indemnity
M
M
12n
22
Nature of Insured Organisation/Occupation
O
O
6a or 4n
23
Coinsurance proportion
M
M
5n
1 Date – preference for date is DDMMYYYY, no delimiter. Key:
M – mandatory field on all records from 1 July 2004.
O – Optional field
T – at least one of these field must contain a value (i.e. not blank). a – alpha
n - Numeric
* Fields so indicated, as a combination, must be unique for each reporting period.
Note: Where a policy is endorsed during the reporting period, separate records should be submitted for the exposure before and after the endorsement showing the relevant factors. See Appendix A, scenario 3 for example exposure records.
Policy Record Data Field Definitions
1. Insurer code
This will be provided by APRA when advised of the method of delivery of the data.
2. Class of Business
• PL = Public & Product
• PI = Professional Risk
3. Record type
• P = Policy record
4. Policy Basis
• C = Claims Made basis
• L = Losses Incurred basis
5. Status
• N = New
• R =Renewal
Where this information is not available, enter a hyphen (“-“).
6. Month of End of Reporting Periods
The data will relate to a six month period. Code the last day of this period in this field as DDMMYYYY, e.g. insert code 30062003 for data relating to the six months ending 30 June 2003.
7. Policy Number
The unique market reference field allocated by the Lloyd’s broker. This information is only used for cross-referencing by APRA – it will not be published except in any individual data reports prepared for the insurer concerned.
8. Risk Number
The broker reference field used to sub-divide accounting entries into different countries.
Professional indemnity (not medical malpractice) and errors & omissions
PII
Directors' and Officers' liability
D&O
Employment Practices
EPL
Association Liability
ASN
Superannuation Trustees
STL
Defamation Insurance
DFI
Financial Institutions Policy
FIP
Information & Communication Technology Insurance
ICT
Medical Indemnity/Malpractice
MAL
Other
PIO
Note that where business is written as part of a package policy, the “Product type” is to be based on the nature of the cover offered, as set out in the above table. The fact that cover is sold in conjunction with other types of insurance is not collected.
10. Original Inception Date
Code the date when a policy providing this cover was first issued to the client in this field as DDMMYYYY. Where this information is not available, enter a hyphen (“-“).
11. Date of Commencement/Inception (Term Inception Date)
Code the inception date of the risk in this field as DDMMYYYY.
12. Effective Start Date (for the purpose of tracking effect of endorsements)
Code the start date of any endorsement which changes the risk in this field as DDMMYYYY. Can be equal to or later than field 11. This field can also be blank if the row reported is not an endorsement record. Where this date is equal to the term expiry date, this signifies a premium adjustment at expiry of the contract.
Where there are multiple endorsements in one reporting period, each endorsement must be reported.
13. Term Expiry Date
Code the date on which the existing policy expires in this field as DDMMYYYY.
14. Effective End Date (for the purpose of tracking endorsements & cancellations)
Code the date on which any endorsement which changes the risk is due to cease in this field as DDMMYYYY.
15. Premium (This field is not used)
This field is to contain either a or b reflecting whether you are providing a value for “Gross Annualised Premium” in field 15a or “Earned Premium” in field 15b.
15a. Gross Annualised Premium
In this field insert the Lloyd’s proportion of the gross annualised premium in force based on the rating factors represented by this record (in whole $, no decimal points) converted to A$ using end of processing month rates of exchange. Exclude all statutory charges (FSL, GST & SD) but include others costs (commissions). If the policy is for a term other than twelve (12) months, pro-rate the premium to a 12month period.
Note that this is NOT the gross written premium – it is the rate of premium for a full 12 months cover based on the rating factors that apply to the policy at the effective start date (field 12).
Also note that the premium for “short term events” cover should not be annualised. “Short Term Events” are defined as those that cover a specific period that is less than one month e.g. a sporting event over a long weekend or an annual festival.
15b. Gross Earned Premium
In this field, insert the Lloyd’s proportion of the earned amount of gross annual premium for the exposure of this policy during the reporting period (in whole $, no decimal points) converted to A$ using end of processing month rates of exchange between the effective start date (field 12) and effective end date (field 14). Include the same components as for gross annualised premium.
For endorsements and cancellations, the gross earned premium should still be the earned amount of gross annual premium for the exposure of this policy during the reporting period (in whole $, no decimal points) between the effective start date of the endorsement or cancellation (field 12) and effective end date of the endorsement or cancellation (field 14).
16. Gross Written Premium
In this field insert Lloyd’s proportion of the gross written premium for the exposure of this policy. Exclude all statutory charges (FSL, GST & SD) but include others costs (commissions) converted to A$ using end of processing month rates of exchange.
For endorsements and cancellations, the updated gross written premium should be stated.
This field should be completed for every reporting period.
17. Risk Factor (This field is not used)
Risk factor is a measure of the relative exposure that the policy represents. Where the information for fields 17a to 17f is not available, enter a hyphen (“-”).
17a. Turnover
Most recently declared annual turnover of the risk represented by this risk record (in whole dollars) converted to A$ using end of processing month rates of exchange. If you collect turnover in bands, show the range of the band in whole dollars e.g. if turnover is up to $5 million, enter “1-5000000”, if between $20 million and $50 million, “20000001-50000000”. Commas must be excluded from all numbers. This should be the total turnover of the organisation, not the insurer’s share of risk (but see note on policy field item 23 below).
17b. Total Assets
Most recent prior year business turnover represented by this risk record (in whole dollars) converted to A$ using end of processing month rates of exchange.
17c. Professional Fees
Most recent prior year annual professional fees represented by this risk record (in whole dollars) converted to A$ using end of processing month rates of exchange.
17d. Total number of staff
Most recent prior year number of full-time equivalent staff members employed in the insured business or practice, whether or not members of a profession.
17e. Other
If any of 17a, 17b, 17c or 17d contains a value, then leave this blank. However if none is applicable then this field should contain a value with a brief description of the risk factor provided in field 17f.
17f. Other Description
If 17e contains a value, this field should contain a brief description of the risk factor of the value provided in field 17e.
18. State
For professional risks, this should be the state (ACT, NSW, NT, QLD, SA, TAS, VIC and WA) where work is done; if multi-state cover is provided, include the state where the majority of work is done. For EPL and D&O, provide the state where the head office is located. This would be expected to be sourced from data for stamp duty split purpose.
Where this information is not available, enter a hyphen (“-“).
19. Postcode
Postcode of location of principal risk. If not available, postcode of head office or postal address of policyholder.
Where this information is not available, enter a hyphen (“-“).
20. Excess/Deductible/Attachment Point
How much of any claim that an insured must bear before the insurer becomes liable (in whole dollars) converted to A$ using end of processing month rates of exchange. Where different levels exist for different causes of claim, enter the excess that is most commonly applied for such policies, or where that is not available, the minimum applied.
21. Limit of Indemnity
Insert the Lloyd’s proportion of the limit of indemnity in whole dollars disregarding any excess payments by the insured converted to A$ using end of processing month rates of exchange. Where different limits exist for different causes of claim, enter the limit that is most commonly applied for such policies.
22. Nature of Insured Organisation/Occupation
For Public and Products Liability, EPL and D&O risks, use the principal classification of the business from the latest edition of Catalogue Number 1292.0 Australian and New Zealand Standard Industrial Classification (ANZSIC), published by the Australian Bureau of Statistics and available on their web site. Provide data at the 4digit ANZSIC code level. Any reports or publications will be aggregated to the 2 digit level ANZSIC.
Residential strata owners’ liability is collected under ANZSIC classification 7711- Residential Property Operators, whereas for Commercial Property Operators it is either 7712 or the occupation code that is most closely aligned with the tenancy of the strata.
For Professional Risks, use the codes provided in Attachment B except for code “OMULTI” which is only for use for facility business.
Where this information is not available, enter a hyphen (“-“).
23. Coinsurance Proportion
This is Lloyd’s overall percentage share of the risk to 2 decimal places (e.g. 66.66 for 66.66%). Where there is a mid-term market change a policy may appear more than once on the file and the gross premium figures may change if the Lloyd’s percentage changes.
Appendix A: Data Validation
The individual policy data submitted by Lloyd’s will be validated by APRA as follows:
Earned premium submitted in information provided by Lloyd’s under Lloyd’s Security Trust Fund Determination No 1, less the premium received for all facilities, is expected to reconcile to within 5% of the total of the earned premium shown in field 15b on the individual policy records submitted by insurers or as calculated by APRA from the gross annualised premium (field 15a). APRA will expect Lloyd’s to explain the source of any greater discrepancy.
While it is appreciated that more extensive reconciliation could be attempted, this could require significant changes to the existing reporting requirements to APRA or the submission of other information (such as management accounts) from insurers that would not be in standard formats.
APRA will expect that Lloyd’s needs to demonstrate the reason for a discrepancy between the individual records submitted to the database and its aggregate data reported to APRA in the above forms, the insurer will share such additional reports with APRA as required.
Appendix B: Example Treatment of Exposure Records
Lloyd’s is to provide an initial record for each policy/risk at the start of each period with additional records each time that policy/risk changes in any way in terms of its exposure. The following sets out the expected relationship between Gross Annualised Premium and Gross Earned Premium for your information.
Note: Start date = Term Inception Date (field 11)
Date exp from = Effective Start Date (field 12)
End date = Term Expiry Date (field 13)
Date exp to = Effective End Date (field 14)
GAP = Gross Annualised Premium (field 15a), NOT written premium.
GEP = Earned Premium (field 15b).
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Appendix C: APRA Occupation Codes for Professional Indemnity